If you have enough money
left over after paying your priority creditors
and essential expenses, it may be possible to
arrange an Individual Voluntary Arrangement (IVA).
Information - Debt
Management
Make a list of all your
creditors, work out which ones to
deal with first. Deal with some debts
first before others because the consequences
of not paying these can be more serious
than for other debts.
Deal
first with what are called 'priority
debts'. After your
priority debts you deal with 'non-priority
debts'.
Priority debts
Priority debts include:
Mortgage or rent
arrears. You could lose your
home if these are not paid
Fuel arrears. You
can have your fuel supply disconnected
Council tax arrears.
A court can use bailiffs
to take your goods. Aafter this if you still
have arrears unpaid, you can be sent to prison
Court fines such
as magistrates' court fines for traffic offences.
The court can use bailiffs
to take your goods. After this if you still
have arrears unpaid, you can be sent to prison.
Arrears of maintenance
payable to an ex-partner or children. This
includes Child Support you owe to the Child
Support Agency. A court
can use bailiffs to take your goods. After
this if you still have arrears unpaid, you
can be sent to prison
Income tax or VAT
arrears. You can be sent to prison for non-payment
of income tax or VAT.
Non-priority debts
Non-priority debts
include:
Benefits overpayments
Credit debts i.e.overdrafts,
loans, hire purchase, credit card accounts
and catalogues
Student loans
Money borrowed from
friends or family
Parking penalties
issued by local authorities.
You cannot be sent
to prison for not non-payment of non-priority
debts. But if you don't make any offers to
pay, without explaining why, your creditors
may take you to court. If you still fail to
pay when the court has ordered it, your creditors
can take further action. i.e. another court
order can be obtained which allows them to
send bailiffs round to take your property away.
This will be sold to cover your debts.
