NON-PRIORITY DEBTS

These include numerous types of debts where the creditor does not have the extra powers of recovery (for example they cannot take your home or seize goods). This means they will not have to be treated as priority and offers only made after arrangements have been agreed with your priority creditors.

COMMON EXAMPLES OF NON-PRIORITY DEBTS

  • Credit Cards

  • Catalogues

  • Unsecured Bank & Building Society Loans

  • Personal Loans (including Doorstep Lenders)

  • Overdrafts


    • If you have problems paying your non-priority creditors you should always check if you have any relevant insurance cover on your accounts.

    OTHERS WHICH MAY BE NON-PRIORITY (depending on circumstances)

  • Rent Arrears (previous properties)

  • Electricity & Gas (previous property or old supplier)

  • Hire Purchase (where goods have been re-possessed)

  • Telephone (disconnected accounts land & mobiles)

  • Rental Agreements (old accounts, TV / Sky etc)

  • Clubs (example health / slimming)

  • Benefit Overpayments (where benefit no longer paid)

  • Social Fund (where benefit no longer paid)


    • Please note that it is common practice for some non-priority creditors to attempt to pressure people into paying them before more important priority debts. Examples are doorstep collectors, collection agencies and call centres. You should always make sure that your priority creditors have been dealt with before making arrangements with, or paying any non-priority creditors.

    You should always check your creditor correspondence as non-priority creditors sometimes take legal action. If you do receive a Court Summons, you will need to respond within a set time. Don’t panic; check the details before completing and returning the relevant form. Please do not hesitate in contacting the bureau or an alternative agency if you need advice and assistance with responding to a Court Summons or any other legal action taken by creditors.

    Next: Debt Management Plan