Will Your Gas And Electricity Supply Be Affected By MAP Bankruptcy?
A Minimal Asset Process does not switch your energy off, and nothing in it tells a supplier what to do. Arrears owed on the date of the award go into the bankruptcy and are cleared at discharge.
Every unit you use from the date of the award is yours to pay for. That single line splits your energy account into two halves.
- Part of your pay is protected by law
- The deduction is set by statutory tables, not the creditor
- An arrestment can be stopped or replaced
- Free & confidential
- No obligation
Behind on gas and electricity? Check what a MAP does to your energy account.
Free, confidential and no obligation.Beyond that, less is published than you would expect. What a supplier may and may not do about a bankrupt household customer is not set out anywhere we could find.
This page says what is fixed and is honest about the rest. How a MAP works covers the process itself.
Are gas and electricity arrears included in a MAP?
Yes. They are ordinary unsecured debts, so they count towards the £25,000 limit and they are cleared by the discharge in section 145(1).
They are not on the list of survivors
Section 145(3) lists what discharge does not touch, and energy arrears appear nowhere in it. Neither do water and sewerage charges billed with your council tax.
Section 145(3) lists what survives. Fines and other court penalties, debts obtained by fraud, and aliment or a periodical allowance payable on divorce are not written off.
They count towards the debt limit as well
Your total debts must be no more than £25,000, under section 2(2)(b) of the Bankruptcy (Scotland) Act 2016.
So arrears count both ways, towards the ceiling and towards what is written off. Which debts count towards the MAP debt limit sets out the one exclusion the Act does make.
The supplier does not have to agree
Discharge operates by law rather than by consent. A creditor cannot opt out of it and neither can a supplier.
What a supplier can still do is decide how it wants to be paid for what you use next. That is a different question from the debt.
When they actually go
Six months after the award, automatically, under section 140(1). There is nothing to apply for and nothing for the supplier to agree to.
Whether a MAP writes off all your debts goes through the exceptions.
Can your supplier disconnect you or fit a prepayment meter?
Both mygov.scot and AiB say a supplier may change how you pay. Neither says a supplier may refuse to supply you, and nothing published establishes that either way.
What the two official sources actually say
mygov.scot has two sentences on it: gas and electricity providers may change your payment method, and for example may put you on a prepayment meter.
The Accountant in Bankruptcy says some suppliers may have concerns about how they provide services and may wish to change how they receive payments, including installing a meter.
Read what those sentences do not say
Both are about payment method rather than about supply. Neither mentions refusing to supply you, and neither mentions a deposit.
We could not establish the position either way. That is a gap in what is published rather than a finding that suppliers may do as they please.
What is settled and what is not
| The question | Where it stands | The detail |
|---|---|---|
| Arrears owed at the date of the award | Settled | Discharged under section 145(1), and not in the section 145(3) list |
| Whether arrears count towards the £25,000 limit | Settled | They are ordinary debts, so they do |
| Energy you use after the award | Settled | A new liability the bankruptcy does not touch |
| Whether a supplier may change how you pay | Stated by mygov.scot and AiB | Both say it may, and a prepayment meter is the example given |
| Whether a supplier may refuse to supply you | Not established | No published source says it may, and none says it may not |
| Whether a supplier may ask for a deposit | Not established | Nothing published addresses it |
| What the energy licence conditions say about a bankrupt customer | Not established | The operative text could not be obtained |
Worried about your energy account while you sort your debts out? Get free help
Free, confidential and no obligation.Does the utilities provision in the Act protect you?
The provision people cite about utility supplies applies to a request made for the purposes of a business, so it does not help a household customer.
Why the citation you will see elsewhere is wrong
Section 222 is headed “Supplies by utilities” and gets cited on debt pages as though it protected a household. Read subsection (3) before relying on it.
It engages only where the request for supply is made by or with the concurrence of the trustee and for the purposes of a business carried on by the debtor. Both limbs have to be satisfied.
What the section is actually for
It stops a utility making continued supply to a business conditional on paying pre-insolvency arrears. It confers nothing on an ordinary household customer.
The office holder it refers to is the interim trustee, the trustee in the sequestration or a trustee under a trust deed. Section 222 is not a domestic consumer protection.
Where the utilities list does help you
Utility charges and council tax are left out of that £1,000 calculation.
Section 219(1) uses the list of supplies in section 222(4) to keep energy, water and communications charges, and council tax, out of the £1,000 calculation in the credit disclosure rule.
That is a real benefit for a household on a low income, and whether you can get credit during a MAP explains where it bites.
What do the rules on prepayment meters actually say?
They are driven by debt rather than by bankruptcy. Ofgem’s rules on installing involuntary prepayment meters came into force on 8 November 2023 and do not mention bankruptcy anywhere.
The conditions before a meter is installed without agreement
| The requirement | What it involves | In force |
|---|---|---|
| What triggers the rules | Debt, not bankruptcy | Bankruptcy is not mentioned on Ofgem's page at all |
| Contact attempts | At least ten before a meter is installed | In force 8 November 2023 |
| A site welfare visit | Required before installation | In force 8 November 2023 |
| Credit on installation | £30 per meter on warrant installations and remote switches | In force 8 November 2023 |
| Households where installation is barred | Including dependence on continuous supply for medical equipment, children under two and severe health conditions requiring warmth | In force 8 November 2023 |
| Once the debt is cleared | A re-assessment and an offer to remove the meter | In force 8 November 2023 |
What that means for a MAP debtor
Nothing in the Ofgem rules treats a sequestration as a trigger. They are about arrears and about the circumstances of the household.
So if a meter is raised with you, ask which of those steps has been taken. Ask for the answer in writing.
What we are not saying
We could not obtain the operative text of the energy supply licence conditions, so this page asserts nothing about what they require of a supplier.
That is a limit on what could be read rather than a conclusion. Treat any page that states a confident rule here with caution.
And ask about the arrears rate
A meter set to recover old arrears is collecting a debt that a MAP discharges at six months. Raise that with the supplier and with your money adviser.
A prepayment meter is a change in how you pay rather than a loss of supply, and the Ofgem rules provide for a re-assessment and an offer to remove it once the debt is cleared.
Which energy bills do you still have to pay during the six months?
All of them, from the date of the award onwards. Discharge deals with what you owed at the date of sequestration and nothing else.
This is where MAP cases come unstuck
Old arrears disappear at the six month mark while a fresh set quietly builds. The same applies to rent and to council tax for the current year.
Which bills are priority debts in Scotland explains why energy sits at the top of that list.
The two halves of your account
| The item | How it is treated | What to do |
|---|---|---|
| Arrears owed at the date of the award | Part of the sequestration and cleared at discharge | Give your adviser the balance for the application |
| Energy used from the date of the award | A new debt, outside the bankruptcy altogether | Keep paying it and budget for it from day one |
| A credit balance on the account | Money owed to you, so it is part of what is counted | Tell your adviser, because assets are capped at £2,000 |
| A direct debit from an account the bank has closed | The payment can fail without warning | Check the account works before the next payment date |
| A prepayment meter set to recover old arrears | The arrears themselves are discharged at six months | Ask the supplier in writing what happens to the recovery rate |
| Water and sewerage charges billed with council tax | Ordinary debts owed at the date of sequestration | Included like any other |
A credit balance is an asset
Your assets must be worth no more than £2,000 in total under section 2(2)(c), and no single item may be worth more than £1,000 under section 2(2)(d).
Money sitting on your energy account is money owed to you, so tell your adviser about it. What happens to your savings in a MAP covers how balances are treated.
What happens to your direct debits and your bank account?
Nothing in the Act freezes an account, but both official sources say a bank may freeze or close one. A failed direct debit creates fresh arrears immediately.
The practical risk
mygov.scot advises keeping money for essential living costs accessible when you apply, and the Accountant in Bankruptcy says a bank may still allow wages or benefits to be paid in.
Neither says how often an account is closed. Whether your bank account is frozen in a MAP sets out the statutory position in full.
Keep paying while the account works
Nothing about a Minimal Asset Process suspends your ongoing energy bill. Missing payments because the bankruptcy is running is the fastest way to build new arrears.
If you cannot afford the ongoing usage, that is a budgeting conversation to have with your adviser rather than something to leave until a letter arrives.
What to check, and when
Check that your energy direct debit will still run before the next payment date. A payment that fails in month one is the commonest avoidable problem.
If you have to open a new account, tell the supplier the new details in writing. Do not assume the change carries across.
How should you prepare your energy account before applying?
Fix the line between old and new. A written balance and a meter reading on the day you sign will do most of the work.
The checklist
| What to do | Why |
|---|---|
| Get a written balance from every supplier | The arrears figure goes on the application and counts towards £25,000 |
| Take a meter reading on the day you sign | It fixes the line between the old debt and the new liability |
| Check for a credit balance | It is money owed to you and it counts as an asset |
| Work out what your ongoing usage costs | You have to pay for it from the date of the award |
| Check that your direct debits will still work | A bank may close an account, and a failed payment creates fresh arrears |
| Ask about the supplier's own hardship support | Most have a team for customers in difficulty, and asking costs nothing |
Help with energy costs is separate from the bankruptcy
Support with energy bills does not stop because you are bankrupt. What help is available with energy bills in Scotland sets out the schemes and who runs them.
mygov.scot covers what to do if you cannot afford your bills, and Home Energy Scotland gives free advice on reducing what you use.
Tell your adviser about anything that changes
A change in how you pay for energy changes your budget, which is one of the things AiB expects to hear about. What happens if your income improves during a MAP covers the reporting duty.
And check the entry conditions before any of this. Whether you are eligible for a MAP runs through all eight.
Frequently asked questions
Are energy arrears written off by a MAP?
Yes. Arrears owed at the date of sequestration are ordinary unsecured debts, they are not in the section 145(3) list of debts that survive, and they are cleared by the discharge six months after the award.
Can a supplier cut you off because you are bankrupt?
Nothing published says a supplier may refuse to supply a bankrupt customer, and nothing says it may not. Both mygov.scot and AiB refer only to a supplier changing how you pay.
Does section 222 of the Bankruptcy (Scotland) Act 2016 protect your supply?
No. Section 222(3) limits it to a request made by or with the concurrence of the trustee and for the purposes of a business carried on by the debtor, so it confers nothing on a household customer.
Will you be put on a prepayment meter?
mygov.scot says providers may change your payment method and gives a prepayment meter as the example. Ofgem’s rules on installing one without agreement are driven by debt and do not mention bankruptcy.
Do you still pay for energy during the six months?
Yes. Discharge deals with what you owed at the date of sequestration, so everything you use from the date of the award is a new liability outside the bankruptcy.
Do energy arrears count towards the £1,000 credit disclosure figure?
No. Section 219(1) leaves out liability for the supplies listed in section 222(4), which covers gas, electricity, water and communications services, and it leaves out council tax as well.
What happens to a credit balance on your account?
It is money owed to you, so it forms part of what is counted against the £2,000 total and the £1,000 single asset limit. Tell your money adviser about it before the application is signed.
Can you switch supplier during a MAP?
Nothing published addresses switching during a sequestration, so ask the supplier you want to move to and ask your money adviser before committing to anything.
Related guides
- What Help Is Available With Energy Bills In Scotland? The separate routes in Scotland, from Home Energy Scotland and the Warm Home Discount to the winter heating payments, and what your supplier has to do.
- Will Your Bank Account Be Frozen In MAP Bankruptcy? No law freezes your account in a MAP. Why banks restrict them anyway, what happens to money already in there, and how to pay for essentials.
- Can You Get Credit During MAP Bankruptcy? The two disclosure thresholds while a MAP runs, which debts stay out of the £1,000 calculation, and what actually counts as obtaining credit.
- Does MAP Bankruptcy Write Off All Your Debts? Which debts a MAP discharge clears at six months, which ones survive section 145(3), and why a student loan is treated differently.
- Which Debts Count Towards The MAP Bankruptcy Debt Limit? Why a student loan stays out of the £25,000 total, which debts go into it, and how the debt limit differs from the £2,000 asset test.
- Which Bills Are Priority Debts In Scotland? What makes a bill a priority debt in Scotland, which creditors need no court action first, and what a statutory solution cannot absorb.
- What Happens To Your Savings In MAP Bankruptcy? Why the practical savings ceiling is £1,000, whether the aggregation rule is in the law, and how ISAs, policies and pensions are treated.
- What Happens If Your Income Improves During MAP Bankruptcy? What you must tell the Accountant in Bankruptcy, when better income moves your case out of a MAP, and how a windfall or inheritance is treated.
- Are You Eligible For Minimal Asset Process Bankruptcy? The eight conditions in section 2(2), how the income and benefits routes differ, and how your assets are measured against the limits.
- How Does Minimal Asset Process Bankruptcy Work In Scotland? Who has to apply for you, what the Accountant in Bankruptcy does with the application, and what changes on the day the award is made.
Written as general information about Scottish debt law rather than regulated financial or legal advice, and your own circumstances may change the answer. Free, impartial help is available from Citizens Advice Scotland, StepChange, National Debtline and Advice Direct Scotland.