Personal Finance Getting Out of Debt Priority Debts | Priority Debts |
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GUIDE TO PRIORITY DEBTS Below is a list of priority debts and possible outcomes of non payment (please note imprisonment will only apply if you WILLFULLY refuse to pay). PRIORITY DEBT CONSEQUENCES OF NON-PAYMENT MORTGAGE LOSS OF HOME RENT LOSS OF HOME SECURED LOAN LOSS OF HOME COUNCIL TAX ATTACHMENT OF EARNINGS / IMPRISONMENT ELECTRICITY/GAS/OTHER FUELS PREPAYMENT METER / DISCONNECTION CHILD MAINTENANCE ATTACHMENT OF EARNINGS / IMPRISONMENT TV LICENCE FINE / IMPRISONMENT COUNTY COURT JUDGEMENTS ATTACHMENT OF EARNINGS / BAILIFFS MAGISTRATES FINE BAILIFFS / IMPRISONMENT HIRE PURCHASE LOSS OF GOODS TELEPHONE DISCONNECTION
Dealing with Non-Priority Debts Make sure that all Priority Debts are taken care of first before making arrangements fo pay the Non-Priority Debts e.g. credit cards, catalogues and unsecured loans. Once you have completed the Personal Budget you will have a better understanding of what is feasible for you to offer to pay towards the Non-Priority debts. Make sure that you stay on top of the payments so that the creditors do not take any further action.
You should ask the creditors to postpone any recovery action for 6-12 months time until you are more financially secure. You should show the creditors a copy of your personal budget to show them that repayment is not practically possible at this time.
When you begin making payments to the non-priority debts you should ask the creditors to stop adding interest to your debt. They do not have to consent to this but it will at least be considered. There are certain rules that relate to creditors and if you feel like you have been or are being harassed contact the Consumer Protection Department on 0121 303 6031.
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