Scottish insolvency reforms set to widen access to MAP bankruptcy

Proposed changes to Scotland’s Minimal Asset Process (MAP) bankruptcy route will give more people with limited debts and assets access to debt relief. If the Scottish Parliament approves the changes, they’ll take effect on 1 April 2027, increasing debt and asset thresholds and strengthening protection for essential assets.

A wider gateway into MAP

The Bankruptcy and Attachment (Miscellaneous Amendment) (Scotland) Regulations 2026 (the regulations), which require the Scottish Parliament’s approval, will increase several financial limits used to determine eligibility for MAP bankruptcy.

MAP offers a simpler bankruptcy process for people with relatively low levels of debt and limited assets. The proposed reforms would substantially increase the financial limits that determine eligibility.

• The maximum level of debt would increase from £25,000 to £50,000.
• The maximum value of a debtor’s assets would increase from £2,000 to £5,000.
• The maximum value of any single asset would increase from £1,000 to £3,000.
• The value of an excluded vehicle would increase from £3,000 to £7,000.
• The period before an individual can make a further MAP application would reduce from 10 years to six years.

These changes reflect some of the recommendations in the Stage 3 report on Scotland’s statutory debt solutions, published in March 2026. The proposed £7,000 vehicle exclusion exceeds the £5,000 limit recommended in the report.

Together, the changes would allow more debtors to access the simplified MAP process. They may also reduce the comparative benefits of other insolvency solutions, such as protected trust deeds, full bankruptcy or the debt arrangement scheme.

Increased protection for essential assets

The rules governing attachment will also change. In practice, the higher exemption values would allow debtors to retain more assets needed for employment, mobility and day-to-day living.

• Vehicles exempt from attachment would increase to £7,000.
• The tools of trade exemption would increase from £1,000 to £2,000.
• Sentimental items protected from exceptional attachment orders would increase to £2,000.

The regulations would also add an invalid carriage to the list of items exempt from attachment and exceptional attachment orders. An invalid carriage is “a vehicle, whether mechanically propelled or not, constructed or adapted for use for the carriage of one person, being a person suffering from some physical defect or disability”.

Together, these changes recognise the importance of protecting assets that enable people to work, travel and manage day-to-day life while experiencing financial difficulty.

Administrative updates

Alongside the financial threshold changes, the regulations contain several technical and administrative amendments.

These include amendments that reflect the Accountant in Bankruptcy’s role in publishing and administering the Common Financial Statement used across Scottish insolvency processes.

The regulations would also update bankruptcy application forms to reflect the revised MAP criteria and confirm that email will be the default communication method unless someone requests an alternative.

Looking ahead

Although the regulations are still subject to the Scottish Parliament’s approval and won’t come into effect until 1 April 2027, Insolvency Practitioners (IPs), debt advisers and creditors may wish to consider the practical implications of the proposed changes.

A higher debt threshold and increased asset limits could make MAP a more appropriate debt solution for a wider range of debtors. When advising people seeking support, IPs and debt advisers will need to consider the available debt solutions, the revised limits and when they take effect.

Greater protection for vehicles, tools of trade and other exempt assets may also influence the advice given to debtors considering their options.

The regulations don’t contain transitional provisions. IPs may wish to consider whether the revised asset protection values could affect assets that haven’t yet been realised in existing cases.