Do these apply to you?
Non-priority Debts
Mortgage & Rent Arears
If you have a creditor who is not one of those listed above in Repaying Priority Items, they are an unsecured or non-priority creditor. This means that you owe them money, but they have no security against your home or your goods, and cannot repossess them.
Unsecured creditors include:
- Personal Loans
- Credit Cards
- Store Cards
- Charge Cards
- Catalogues/Mail Order
- Bank loans and overdrafts
- Buy Now Pay Later
- Unsecured creditors include lenders who collect money on the doorstep!
No creditor likes to be offered less than was originally agreed, but they will usually negotiate if you are acting in good faith and are genuinely unable to pay.
The method of making an offer of repayment is covered later - the principle is that every unsecured creditor should receive an offer of payment but that they can only ask for a fair share of your spare income.
To decide what your spare income is you need to set down your income and expenditure in a financial statement.