Going through a Minimal Assets Process with CAP

What you need to know about going through a Minimal Assets Process with CAP. 

A Minimal Assets Process (MAP) is a version of bankruptcy available for people in Scotland. It’s usually suitable for people receiving benefits or lower incomes, with relatively small amounts of debt. CAP will check that you qualify for this before helping you with the application and submitting it for you.

Can I get a MAP?

Please note

The following information applies only to people living in Scotland.

To qualify for a MAP:

  • Your debts must total between £1,500 and £25,000

  • Your assets must be worth no more than £2,000, with no single item worth over £1,000

  • Your car or other motor vehicle may be worth up to £3,000

  • You must not own land or property

  • You cannot have been through sequestration in the last five years, or a MAP in the last ten years

  • Your income must come solely from benefits only, or you must have no disposable income (this means the money left over after you’ve paid all your living costs each month, such as food, rent and bills).

  • You must live in Scotland, or have lived there within the last 12 months.

If you decide to work with us, we’ll let you know whether a MAP would suit you as part of your CAP Plan.

How do I apply for a MAP?

1. Getting started

You’ll receive a letter from CAP explaining your insolvency advice along with a copy of the Full client agreement, which you need to sign and return. If your case has just been set up, your Debt Coach may have already discussed this with you.

2. Paying for your MAP

It costs £50 per person to apply for a MAP, which may be waived if you receive certain benefits. This is not a fee payable to CAP for our service which is, and will always be, free of charge. Instead, this money is paid to the Accountant in Bankruptcy’s (AiB) office.

3. Your credit report

Before applying for a MAP for you, we’ll apply for a credit report just to check none of your debts have been missed off. If you’re a new client, we’ll ask you to sign a Credit report consent form which will allow us to access your credit report.

4. Pre-application check

Next, we’ll carry out a pre-application check. CAP’s experienced Debt Advisors will make sure we’ve got everything in place to go through the MAP on your behalf.

5. Submitting your application

When your application is ready and we have received all the necessary paperwork and evidence from you, we’ll arrange a phone call with you. Once you confirm you are happy with the contents of the application, we will submit it online on your behalf.

6. Approved!

Your application is done! The Accountant in Bankruptcy (AiB) will then approve the application, or respond if they have any queries. Typically, an application will be resolved within a week.

Questions

A MAP covers most debts. However, it does not include court fines, student loans, child maintenance arrears or debts taken out fraudulently.

If your circumstances change within the six months of a MAP, you may be upgraded’ on to the full sequestration process. If this is a result of not disclosing information about your debts or financial situation, you’ll need to make up the rest of the £150 fee.

During the MAP, certain things may be affected, depending on your individual circumstances. This could include: your bank account being closed or frozen (you may only be able to access a basic bank account), your employment being affected, or your tenancy if you rent privately. We’ll talk you through how you might be affected if we think a MAP is the right option for you.

Your details will be added to the Register of Insolvencies (ROI) for five years following your MAP. This register is public, but it’s unlikely anyone but your creditors will search it.

After six months, you’ll usually be automatically discharged. However, for the next six months (while the MAP is being finalised), you cannot borrow over £2,000, without telling the lender that you’re in a MAP. If you do, this would be classed as an offence.

Your credit rating will also be affected for six years, as a record of your MAP will stay on your credit file for this time. This could make it harder to take out credit.

Go back to other potential routes out of debt