There’s a lot to take in when you’re considering starting Minimal Asset Process (MAP) bankruptcy. If there’s still something you’re not sure about, our MAP FAQs should help. They cover some of the most commonly asked questions about MAP bankruptcy. And by the end, you can be sure you’ve got all of the facts to decide if it’s right for you.
MAP lasts for six months after the Accountant in Bankruptcy (AiB) accepts it. It’s shorter than sequestration bankruptcy – this generally lasts for 12 months.
MAP bankruptcy will appear on your credit report for six years after you start it. And during this time, it will have a negative effect on your credit score. This means that even when your MAP is over, you might struggle to get credit or to apply for some services including a tenancy agreement or mobile phone contract.
You’ll pay a one-off application fee of £90 for MAP. This goes to the AiB when you apply for MAP through an approved money advice organisation.
We don’t offer a MAP application service but if MAP bankruptcy is the best solution for you, we will signpost you to the relevant free services to help you do this.
If you can’t afford the MAP application fee upfront, you may be able to pay it in instalments. But it’s important to note that your MAP won’t actually start until you’ve paid the full £90.
MAP is only for unsecured debts – so you can’t include any mortgages or car finance loans that are secured against the vehicle.
But there are a few other debts you can’t include in MAP. These are:
- student loans,
- magistrates court fines, or
- debts from fraudulent activity (this includes benefit overpayments).
When you start MAP bankruptcy, the AiB will tell your creditors about this. This means you won’t need to pay anything towards your unsecured debts for six months.
Your creditors are also not allowed to contact you during MAP. They won’t be able to send you any letters, call you or pursue any further action against you while your debt solution is ongoing. However, they can still send you certain legal documents such as annual statements that fall within this period.
If your circumstances improve and you no longer qualify for the Minimal Asset Process, you can be transferred to the full sequestration bankruptcy process. This means your bankruptcy will last the full 12 months and you’ll have to pay the extra £110 in fees.