A MAP or Minimal asset process offers protection to all those who are not able to apply for formal sequestration or bankruptcy due to the fees involved. If you feel that it applies to your case, then you need to read on.
Generally, a MAP applicant must have little or no income, possess assets of less than 2000 and has debts not more than £1500. The MAP is a form of sequestration wherein you would be required to pay a small token amount each month towards your debt contribution and would no longer have to put up with being hassled by creditors.
The Top Things to Keep In Mind
While the MAP and other formal sequestration processes can provide you some relief from your debts, you would still need to practice strong fiscal management and ensure that you do not accrue any additional debts.
While sequestration lasts for a year, the process is not automatic, and you need to prove that you have a viable plan in place to meet your current living expenses and avoid taking up any more debts.
Additionally, some creditors can file an application in court seeking redressal, but since you have little to no assets, and are part of a low-income group, you can still retain protection from your creditors. You can also petition your creditors to write off your loans, given you current fiscal circumstances.
Some may oblige, so there’s no harm in trying to get the same happen in your case. But remember, most creditors would require valid proof of your current circumstances including and not limited to medical certificates pointing to an underlying health condition or something similar.
How Can You Proceed?
You can also seek advice and help from several debt relief centers. Most of these places will help you to manage your debts better and do note, while some do offer free services for those in need, a few do not. So make sure you check up with them and with their help you should be able to manage your life better and improve the quality of your living. And in time, you should be able to obtain a new job and improve your fiscal health in the process.
With MAP and other similar processes, Scotland does offer a variety of debt relief options for those with debt. Apart from the various tips and advice as handed out by these debt relief centers, you can also start practicing fiscal management and cut corners and avoid spending unnecessarily. And if you can afford the sequestration fee, then you can apply for a formal order and gain more time to pay your creditors.
Additionally, you can also apply for a debt arrangement scheme DAS or set up a trust deed, wherein you can pay off your creditors a small amount every month. But for you to set up a trusted deed you must have £5000 or more in unsettled debts. And remember, you would need to inform the authorities if your situation changes, for example, landing a new job would fall into this category. With these debt relief options, you should be able to regain relief from your debts for a while.