| Some debts are more
important than others. The law allows different
creditors different ways of getting their
money back. If you bury your head some creditors
could: |
 |
Send in
bailiffs to take possessions from your home
or business |
|
Repossess your home |
|
Cut off your gas, electricity
or water |
|
Ask the magistrates
court to send you to prison |
| |
| These
are the types of debts you could have problems
with: |
|
Mortgage |
|
Second mortgage |
|
Income tax, National
Insurance, VAT arrears |
|
Council tax/Community
Charge |
|
TV Licence |
|
Water rates |
|
Gas/Electric |
|
Magistrates court fines |
|
Unpaid Fines |
|
Maintenance Arrears |
|
Hire purchase (Essential
items) |
| |
| Ask
to be placed
on a repayment programme |
| Although gas, electricity
and water companies have the power to disconnect
the service, they normally place you on a
repayment programme by way of card meters. |
| |
| All the above are priority
creditors and under no circumstances should
you ignore them. It is important you use
your available money to pay these creditors
first. Do not pay your secondary creditors
until you have reached an agreement with
all of the above where applicable |
| |
| Secondary
creditors include: |
|
Unsecured
loans |
|
Credit Cards |
|
Unnecessary
hire purchase agreements |
|
Store cards |
|
Catalogue
and mail order |
|
Mobile phone
(disconnected) |
|
Repossessed
house or car loans |
| We do
not wish to make secondary creditors seem
less important, but their power to recover
the debt are minimal compared with priority
debts. |
| |
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