PRIORITY DEBTS

The law states that some debts are more important than others and give creditors different options to recover their money, these are called priority debts.

You should always make payments to priority creditors before your less important non-priority debts.

If you do not act quickly on your priority debts it could result in creditors taking action that may lead to:

  • loss of your home

  • electricity or gas disconnection

  • Using sheriff Officer’s to attach Wages/Bank Accounts/ Goods


    • EXAMPLES OF PRIORITY CREDITORS & RECOVERY ACTION

  • Rent & mortgage arrears (loss of home)

  • Secured loans (loss of home)

  • Council Tax (attach to earnings /bank accounts/Goods)

  • Sheriff Court Fines ( prison)

  • Income Tax ( bankruptcy / other)

  • T.V. Licence (fine / prison)

  • Electricity / Gas ( disconnection)

  • Hire Purchase (loss of car / goods)

  • Child maintenance (attach to earnings /loss of Driving Licence/ prison)

  • Decree (attach earnings)


    • If you have problems paying priority creditors, then you should contact them as soon as possible, don’t wait for arrears to mount up or for legal action to commence. You will need to explain your circumstances, discuss options and agree an affordable payment plan if possible. You should always check if you have any relevant insurance cover on any of your accounts.

    Please note that you must deal with your priority debts before making arrangements with non-priority creditors.

    Further on in this guide is the CAB Debt Management Plan (creditor checklists included) designed to assist you to deal with your debts.

    Please contact the Bureau if you require further advice or clarification regarding the above or other potential priority debt.

    Useful Contacts

    Shelter Free Housing Advice 0844 5152424
    www.shelter.org.uk

    Citizens Advice
    www.adviceguide.org.uk

    Next: Non-priority debts are briefly explained