Scottish solutions

Minimal Assets Process (MAP)

What is a MAP?

It is aimed at people with a low income and not many assets and is cheaper and more straight forward than sequestration or full bankruptcy. You can only apply for a MAP through an approved money adviser and you will need to pay a fee of £50 (reduced from £90 at least until the end of September 2020) to the Accountant in Bankruptcy. This can be paid in instalments, but the full amount needs to be paid before you can apply. The fee may be waivered if you receive certain benefits. To qualify you must meet the following criteria:

Benefits of a MAP

Considerations of a MAP

Trust Deed

What is a Trust Deed?

It is designed to help people with unaffordable debts of at least £5,000 and needs to be set up with the help of an Insolvency Practitioner who will charge fees to set up and supervise the PTD, however these fees will usually be included within the monthly payment which you make. The Insolvency Practitioner will write to your creditors and ask them to agree to the trust deed. Your trust deed will then become protected if a sufficient proportion of creditors agree to it.

The agreement usually lasts for four years and once it’s completed, any unsecured debts included will be written off. Trust deeds are not available if you live in England, Wales, or Northern Ireland. In these countries, IVA is a similar solution.

There are restrictions on the expenditure of a person who enters into a protected trust deed.

During your Trust Deed, you will continue to pay your bills and other important living costs and make a payment into your trust deed towards your unsecured debts. Your creditors will expect you to pay in as much as you realistically can afford, so may want you to cut back on expenditure in some areas.

Benefits of a Trust Deed

Considerations of a Trust Deed


What is a Sequestration?

Sequestration/Bankruptcy is a legal process usually suitable for people who little hope of paying back their debts in a reasonable time and whose circumstances are unlikely to change. Bankruptcy works different in different parts of the UK. If you live in England, Wales or Northern Ireland please see the bankruptcy section.

Sequestration can give you a fresh start and will write off your debts however the decision should not be taken lightly as it can affect other areas of your life such as your employment or living arrangements. You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living. The Bankruptcy will usually least for 12 months and there are usually no payments required, however if you have any surplus income then payments are required under an Income Payments Arrangement which can last for up to 4 years.

The Accountant in Bankruptcy (AiB) are responsible for administering the process of personal bankruptcy in Scotland. You need to have at least £3,000 debt to qualify and not have been made bankrupt in the last 5 years. If your debts are less than £3,000 then you may be able to apply for a Minimal Assets Process Bankruptcy (MAP). You can only apply for bankruptcy through an approved money adviser and the fee is £150 payable to the Accountant in Bankruptcy (reduced from £200 until at least the end of September 2020). You can pay in installments however you must have paid the fee in full before the application is made.

Benefits of a Bankruptcy

Considerations of a Bankruptcy

What is a DAS?

Under DAS you can apply for a Debt Payment Programme (DPP) which allows you to pay off your debts over a period of time. If your circumstances change you can apply to vary the terms of the DPP. You must seek the assistance of a Money Adviser before you can apply for a DPP.

You’ll keep making reduced repayments until you have repaid your debt in full which will take longer as you will be making reduced payments.

The DAS is not available if you live in England, Wales or Northern Ireland. In these countries, a debt management plan (DMP) is a similar solution although with different features, costs and associated risks.

Benefits of a DAS

Considerations of a DAS

Made by Statuo