Sequestration

To qualify for MAP, you must meet the following criteria:

• Debt Amount: Less than £25,000 of unsecured debt
• Income Level: Income must be low enough that you have no surplus for debt repayments after meeting essential expenses. Alternatively, if you have no earned income, you would also meet this criteria.
• Asset Limit: Total assets must be less than £2,000, with no single asset worth more than £1,000
• Residency: You must be a resident of Scotland or have lived there within the last year.
• Previous Bankruptcies: You must not have been declared bankruptcy in the last five years.

Once approved, MAP provides a fresh start and after six months, you are discharged from qualifying debts. The process is quick, affordable, and designed to provide relief to those who cannot repay their debts due to limited financial means.

The Minimal Asset Process (MAP) is intended for people with very limited income and few assets, while Full Administration Bankruptcy is generally suitable where MAP isn’t available and you have earned income that allows you to make an affordable contribution.

We’ll explain the differences and help you understand which option may be appropriate for you.

Eligibility depends on several factors, including your debts, income, assets and overall financial circumstances.

If sequestration is appropriate, we’ll explain which type may be available to you and whether another debt solution, such as a Protected Trust Deed or Debt Arrangement Scheme (DAS), could be more suitable.

Get in touch to find out which debt solution may be right for you

It depends on your individual circumstances.

If you own your home, the equity in your property will need to be considered as part of your bankruptcy. Before recommending sequestration, we’ll explain what this could mean for you and discuss any alternative solutions that may better protect your assets.

Many people are able to retain a vehicle where it is needed for work or essential day to day living, although this depends upon its value and your individual circumstances.

We’ll explain how this applies to your situation before you make any decisions.

Yes. Sequestration is a formal insolvency solution. It will be recorded on your credit file for six years. While this may make obtaining further credit more difficult for a period of time, many people decide that dealing with unaffordable debt and making a fresh start outweighs the impact on their credit file.

We’ll explain the implications fully before you decide whether to proceed.

Sequestration will include most of your unsecured debts, including credit cards, personal loans, overdrafts, storecards, payday loans, arrears of rent and council tax. There are some notable exclusions though, including student loans and fines owed to the crown.

If you’re not sure who you owe money to, our advisers can quickly help you identify all debts on your credit file. They will review all of your debts and explain if any would not be included in sequestration.

Once sequestration has been awarded, creditors included in your bankruptcy are prevented from taking further action to recover those debts.

Your adviser will explain what to expect throughout the process and answer any questions you may have.