Your rent is a priority debt because if you don’t pay, we can ask the court to evict you. It is important that you pay your rent, service charges, mortgage or loans that are secured on the property because if you don’t pay them, you could lose your home. The table below shows priority debts and what could happen if you do not pay these debts.
Type of priority debt | Risk if you do not pay |
| Rent/secured loans | Lose your home |
| Gas/electricity/water | Supply cut off |
| Council tax arrears | Bailiffs/imprisonment |
| Magistrates’ court fines | Bailiffs/imprisonment |
| Income tax/National Insurance / VAT arrears | Bailiffs/imprisonment |
| Maintenance / Child Support | Bailiffs/imprisonment |
Non-priority debts or credit debts
Non-priority debts include bank debts and overdrafts, debts to door-to-door callers and money lenders, catalogues, credit cards and store cards. If you don’t pay these non-priority debts, then action can be taken in the County Court, where a judgment for payment will be made. If you don’t keep up with payments, then bailiffs can be used to visit your home and try to take goods. If you are having difficulty making payments, you can always go back to court.
Non-priority debts | Action available to get money back |
| Bank debts and overdrafts | County Court judgment/bailiffs |
| Debts to door-to-door callers and money lenders | County Court judgment/bailiffs |
| Personal loans | County Court judgment/bailiffs |
| Catalogues | County Court judgment/bailiffs |
| Credit cards and store cards | County Court judgment/bailiffs |
You should always pay your priority debts first. If you have any money left over, then you can deal with these non-priority debts.
If you have nothing left, say so. Show your creditors by sending them your personal budget and a letter to back this up.
If you have something left, the best way to divide it between your creditors is called pro-rata distribution. This is how the court would do it and means all your creditors get a fair share.
Don’t worry if the amounts look small. Your creditors would rather you pay a small amount regularly than make promises you can’t keep.
