Check If You Qualify

Advantages and Disadvantages of the Minimal Asset Process in Sequestration

Thomas McKay - Updated - 14th May 2024 - 3 minutes to read

If you are struggling to repay debt because you’re on a low income and have few assets to sell, the Minimal Asset Process (MAP) may provide a way out of this worrying situation. MAP allows you to claim sequestration, or bankruptcy; it can relieve huge financial pressure and allow you to start again.

Other forms of debt relief rely on your ability to make monthly payments, or sell assets to repay creditors, but the Minimal Asset Process could allow you to be free of unsecured debt within six months.

What is the eligibility criteria for MAP?

Your money advisor will need to assess your income and expenditure to determine eligibility for MAP. If there is no surplus income after essential payments have been made, or you have received certain benefits for the last six months, you may be able to make an application.

Scotland Debt Calculator

Get a rough indication of what your repayments might be under each of our different debt solutions.

Your Total Debt

£0 - £5,000

£5,000 - £10,000

£10,000 - £20,000

£20,000+

Your Employment Status

I am employed

I am self-employed

I am unemployed

I am a student

I am retired

Your Total Monthly Income

£0 - £1,000

£1,000 - £2,000

£2,000 - £3,000

£3,000+

What can you pay monthly towards your debt?

£0 - £100

£100 - £200

£200 - £300

£300+

What are the advantages of entering this process?

  • If you meet all the conditions of MAP, the process lasts no longer than six months so you can start afresh in a relatively short period of time
  • There is a fee of £90* to use this process, which is cheaper than ‘standard’ sequestration. (*MAP application fees are removed for those in receipt of specified benefits, and reduced to £50 for all others following the Scottish Coronavirus Act). 
  • You don’t have to make any payments towards your debt as you have no disposable income
  • All debts are written off after six months, as long as you have met all the requirements
  • The pressure from creditors is relieved – they are not allowed to contact you whilst in this process

And the disadvantages?

  • You won’t be able to obtain credit for a long time, as sequestration stays on your credit file for six years. Even when you are released from the process, it will be difficult to borrow money.
  • It could affect future job applications, as some employers don’t allow their staff to enter a formal debt process. Even if you decide not to tell them, your details will be on the Register of Insolvencies which is open to public scrutiny. You’ll also be prevented from becoming a company director.
  • Your ability to secure a tenancy agreement might be affected
  • If you don’t adhere to the conditions of MAP, the court may issue a Bankruptcy Restriction Order which prolongs the terms for up to 15 years

Should your circumstances change for the better after you enter the Minimal Asset Process, you’ll need to revert to standard sequestration which will involve a further fee, and regular payments towards your debt.

Scotland Debt Solutions can help establish your eligibility for the Minimal Asset Process, and ensure you understand your obligations. We will analyse your financial situation and explain any other alternatives. Call to arrange an initial meeting free-of-charge.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Thomas Mckay

Thomas McKay

Partner

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners