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> Debt Advice
> Priority Debts
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Stage 7: Priority Debts
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What Action Can Be Taken Against You? |
Example Offers to Priority Creditors |
Priority debts should be tackled first before dealing with secondary
debts.
This section helps you recognise your priority debts and make offers to your creditors
(i.e. negotiate how much you are going to pay them).
You
will need to create a budget sheet for both your business budget
and household budget before calculating how much money you have left to pay creditors.
Although all debts are important, some debts are more important than
others. If you don’t act quickly to pay priority debts, your
creditors could:
- take possession of your business premises or home;
- cut off your gas or electricity (called ‘disconnection’). The law has changed and your water company
cannot disconnect your water supply to your home. Phone us for advice if you cannot pay your water bill;
- send the bailiffs to take equipment, vehicles, furniture or other goods from your business or
home (this is called ‘distraint’);
- ask the magistrates’ court to send you to
prison.
What action can be taken against you?
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