MAP (Scottish DRO)- some questions before I go ahead

Legacy_user

I had a very long chat with a lovely Stepchange debt advisor and she said my income and assets (or lack thereof) make me a perfect candidate for Minimal Asset Process, which I believe is more or less analogous to the DRO in England. So I'm just waiting on all the paperwork.

Still can't quite shake the idea that it's all too good to be true and that I'll get tripped up along the way somehow. These are the only stumbling blocks I can think of, so if anyone can tell me if these are likely to hold things up at all that'd be fab. ( the advisor did tell me all of this but I was such a lot of info that I'm worried it didn't all get in)

My husband has a mortgage in his own name. I'm essentially just a lodger. Does he have to somehow prove this or will a letter from him cover it? Similarly, the council tax payments are covered by him and I just give him money towards it. Same again, signed letter? I ask because the advisor made it sound like everything is done via phone and letter.

Also, I'm having issues contacting some of my debtors. They're from a few addresses back and in a way I'm scared to make myself known to them again and start the deluge of letters. Can I keep my contact with them via email?

If anybody has additional info to give me I'd be over the moon. I'm sooooo hopeful for this to work. It's my only chance of financial independence I'll have for the foreseeable.

mwarby

In terms of debtor contact I don't see a need for much, other than the need to get balances. The MAP being a route into sequestration(bankruptcy) I'd think the worry about genuinely forgotten debts should be less (as in bankruptcy, all debtors are included, known or unknown)

You might find the property an issue. Although your name isn't on mortgage and you say you pay rent, I can see issues. Firstly you may have benifical interest in the property. Secondly unless you have a proper tenancy agreement (and even then tbh) it would appear you are not genuine tenant and landlord, but husband and wife sharing the mortgage. I'd suggest that if this was a divorce case and not an insolvency one, your lawyer would be looking to get some money for house, I suspect in an insolvency case your creditors would look to do the same

System

Hmm, the advisor didn't mention this would be an issue but when you put it like that I understand. The thing is, in order to get the mortgage and finalise the sale, I had to sign something with my solicitor stating that in the case of divorce I'd have no recourse to the house. Would that cover that, do you think?

mwarby

I'm not at all sure tbh, but i think it can be broken down

Will debt advisor, AIB or creditors even question the arrangement. If they don't your clear. The AIB or creditors could question this at any stage

If questioned does the arrangement stand any legal test

For me the big risk is that you get into bankruptcy, where is it questioned and found to be not watertight and AIB wants to release value to repay creditors. At this stage it's rather too late to back out

I'd seek out the advice of other debt charities, and if possible a solicitor

National_Debtline

Hi bobbylou82


The concept of "beneficial interest" is not considered when one goes bankrupt in Scotland, whether through the normal route or the Minimal Asset Process (MAP).


The trustee will simply check that the title to the house is genuine. This will usually involve checking back over the past five years for any transfer of the deeds out of the bankrupt's name. If this was done at a time when the bankrupt was already technically insolvent i.e. failing to repay their debts, the trustee could seek to reverse the transaction.


The bottom line is that you need to check whether your name is on the deeds now or has been at any time in the past five years. If the answer is no, I don't see that you have anything to worry about.


Dennis
@natdebtline

System

That's exactly what I needed to hear Dennis! The house is only 6 months old so the process is still clear in my mind, my name appears nowhere on anything. I was sort of ashamed of being in the sort of financial position that made it necessary my husband did everything at that end, but I'm grateful now!