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Creditor recovery procedures

If you are behind with monthly repayments it is important to know the rights of the lenders and the possible consequences of non-payment. Different creditors (lenders) have different ways of recovering money. Also, some lenders have more rights than others.

Below is a list of debts that should always be regarded as a priority. These debts should not be ignored no matter how demanding your other creditors are. However, these are worst case scenarios and will not necessarily happen to you. Read the articles listed below if you are particularly concerned about one of your debts.

Debt

Action

Mortgage

Repossession
More Information on repossession

Secured Loans

Repossession
More Information on repossession

Court Fines

Bailiffs/Imprisonment
More Information on Bailiffs

Council Tax

Bailiffs/Imprisonment
More Information on Bailiffs

Gas/ Electricity

Disconnection
More Information

Water Rates

Disconnection
More Information

Income Tax

Bailiffs(seizure of goods)/Bankruptcy
More Information on Bailiffs
More Information on Bankruptcy

National Insurance

Bailiffs(seizure of goods)/Bankruptcy
More Information on Bailiffs
More Information on Bankruptcy

VAT

Bailiffs(seizure of goods)/Bankruptcy
More Information on Bailiffs
More Information on Bankruptcy

TV Licence

Fine/Bailiffs/Imprisonment
More Information on Bailiffs

Hire Purchase

Repossession of goods
More Information

Maintenance Arrears

Bailiffs/Imprisonment
More Information on CSA Payments
More Information on Bailiffs


Other debts are still important and should not be ignored, but these creditors (listed below) have less power than the priority creditors (although all of them can make you bankrupt under certain circumstances, or issue a County Court Judgment against you).

Credit Cards
Store Cards
Overdraft
Personal loans (unsecured)

You should always try to pay something to all of your creditors even if it is only £1 a month and keep them fully informed about your financial situation.

For more information on creditors and their rights contact one of the following:

Payplan - The Free Debt Advice Agency
Freephone 0800 917 7823
Email: help@payplan.com
Web: www.payplan.com

Citizens Advice Bureaux - www.nacab.org.uk

National Debtline - 0808 808 4000

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