Minimal Asset Process (MAP)
Minimal Asset Process (MAP) is a route into sequestration (bankruptcy) for people with no assets who are on a low income or benefits.
Rather than having to pay the standard £200 upfront fee for sequestration, the fee for MAP is just £90. MAP lasts for a shorter period of time than sequestration – usually just 6 months.
The upfront fee is much cheaper and the qualifying criteria is less than with sequestration so if you are struggling to make ends meet and have no spare income with which to repay your debts after all your essential household expenditure has been taken care of, it could be worth considering MAP.
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How does MAP work?
When you contact PayPlan, we will go through all your debts, and your income & expenditure.
If you meet the criteria for MAP, and it is the recommended debt solution for you, you will then need to contact the Accountant in Bankruptcy.
They will help you complete the correct paperwork, and apply for the MAP scheme.
What is the difference between MAP & sequestration?
MAP (formerly known as LILA – Low Income, Low Assets) is for people who are either on benefits, or who have no spare income with which to repay their debts after living expenses have been deducted.
Anyone can apply for sequestration – but if you have a no surplus income or assets, MAP could be a more suitable debt solution for you.
MAP has a lower application fee – £90 compared to £200 for sequestration – and it could enable you to be debt-free in just 6 months, rather than 1 year with sequestration.
There will be conditions you have to adhere to for 6 months after the Minimal Asset Process has finished – but it is still a quicker debt solution than sequestration.
If you are struggling with your debts and looking for help, get in touch with PayPlan. We can talk you through a range of debt solutions and help you find the best option for you.
Do I qualify for MAP?
There are a few criteria you must meet in order to receive the benefits of MAP.
You must have a minimum debt level of £1,500, and your total debt level cannot exceed £17,000.
This debt solution is also only available to people who don’t own any property/land, or any other assets worth more than £1,000 (with the exception of a car, which cannot be worth more than £3,000).
You must also be in receipt of benefits for at least the past 6 months, or have no surplus income after all your essential living expenses have been taken care of.
More helpful information about MAP
If you want more information about MAP, get in touch with PayPlan now.
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In the meantime, here are some useful resources to provide you with more information: