What Happens if I Don't Pay My Debts?
Different creditors have different rights and ways of recovering money owed, so you will need to know the consequence of non-payment to your specific creditors. Below is a list of priority creditors. Debts to these organisations should NEVER be ignored as it could lead to serious consequences.
| Credit Type | Consequence of Non-Payment |
|---|---|
| Court Fines | Bailiffs Imprisonment |
| Council Tax | Bailiffs Imprisonment |
| VAT | Bailiffs Bankruptcy |
| Income Tax | Bailiffs Bankruptcy |
| National Insurance | Bailiffs Bankruptcy |
| Mortgage | Repossession |
| Secured Loan | Repossession |
| TV License | Fine Bailiffs Imprisonment |
| Maintenance Arrears | Bailiffs Imprisonment |
| Gas | Disconnection |
| Electricity | Disconnection |
| Water Rates | Disconnection |
| Hire Purchase | Repossession of goods |
Below is a list of non-priority creditors. These debts still should not be ignored but usually non-payment will only result in minor consequences. However, some non-priority creditors still have the power to enforce bankruptcy and issue county court judgments.
- Credit Cards
- Store Cards
- Overdraft
- Personal loans (unsecured)
