Debt Blog Priority Debts

What are priority debts

A Priority Debt is a bit different from your normal unsecured debts such as credit cards or loans. Priority debts can carry some serious consequences should you not maintain your payments towards them.

If you are in arrears with your priority debts then catching up with those arrears should be your number one priority. If you are struggling then please get help as soon as you can.

Listed below are a number of examples of this type of debt. Included is information about what could happen to you should you not repay them. Finally there is a link so you can get help and talk to someone about your debts.

Examples of Priority Debts

Child Maintenance

Not paying your child maintenance could mean that: –

  • The money could be deducted directly from your wages.
  • You could spend time in prison.

A County Court Judgment

Failure to maintain repayments towards your County Court Judgment could: –

  • Mean Bailiffs visiting you to take away your property.
  • Result in an Attachment of Earnings Order. In other words money being deducted from your wages.
  • Cause a Charging Order to be entered against your property.

Council Tax

Should you fail to maintain your council tax payments, this could lead to: –

  • Bailiffs visiting you to take away your property.
  • Money being deducted from your wages.
  • Time in prison.

Gas Electricity and other fuel

Failure to keep on top of your payments to your utilities could lead to: –

  • Disconnection of your utilities.

Hire Purchase

Not paying for your hire purchase agreement could: –

  • Mean your goods are repossessed.

Magistrates Court Fine

Should you fail to pay a magistrates court fine you could: –

  • Face time in prison.
  • Expect a visit from the Bailiffs to take away your property.

Mortgage

If you fail to keep up the agreed repayments on your mortgage you could: –

  • Loose your home as it would be repossessed by the lender.

Rent

Failing to pay your rent would result in: –

  • You being evicted from the property.

Secured Loan

Failing to maintain payments towards a loan secured against your property could: –

  • Mean your property will be repossessed. If the loan is secured against your home you could loose the roof over your head.

Tax, National Insurance and VAT Payments

Failing to pay these could result in: –

  • Bailiffs visiting you to take away your property.
  • Charging order being made against your land or home.
  • Deductions being made from your wages.
  • You being made Bankrupt.

Telephone

If you fail to maintain payments for your telephone you could: –

  • End up with your service being disconnected.

What are non-priority Debts?

Non-priority debts are unsecured debts and the consequences are less severe than those listed above. Here are some examples of non-priority debts: –

  • Credit Cards.
  • Store Finance.
  • Overdrafts.
  • Unsecured Loans.
  • Store Cards.
  • Payday and Short-Term Loans.

The above debts could lead to priority debts if a creditor takes you to court and gets a County Court Judgment.

Now that you have found out about Priority Debts why not visit the Get Debt Help section on this site, to find out where you can get help with your debts?

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