Priority debts
Clients need to deal with ‘priority debts’ first (7). These
include:
Mortgage or rent arrears.
Can lead to loss of a home.
Fuel arrears.
Can result in fuel supply disconnection.
Council tax arrears.
In England, bailiffs can take goods, and if you have arrears
after this, you can be sent to prison. In Scotland, you can’t be
imprisoned, but bank accounts or wages can be arrested, or
possessions seized.
Court fines.
In England, if you don’t pay magistrates’ court fines for
traffic offences, bailiffs can take goods, and you can be sent to
prison. In Scotland, if you don’t pay fines for criminal offences
you can go to prison.
Arrears of maintenance
Payable to ex-partners or children (including Child Support
Agency arrears). If you don’t pay these, bailiffs can take
your goods. If, after this, you still have arrears, you can be sent
to prison. In Scotland, if you don’t pay, you can ultimately be
sent to prison.
Income tax or VAT arrears.
You can be sent to prison for non-payment of income tax or VAT.
In Scotland, you could have bank account/wages arrested, sheriff
officers seizing possessions, or you could be made bankrupt.
Loans
These are priority debts if secured against your home.
TV licence arrears.
It’s a criminal offence to use a television without a
licence.
Non-priority debts
You can’t go to prison for not paying non-priority debts.
However, creditors may take you to court. If you fail to follow a
court’s order to pay, bailiffs/sheriff officers can seize
property.
Benefits overpayments
Credit debts - overdrafts, loans, hire
purchase, credit card accounts and catalogues.
Student loans
Money borrowed from friends or family.
In England, local authority parking penalties.
However, not in Scotland for fixed penalty parking offences issued
by criminal courts/ local authority. If you don’t pay, your bank
account or other
possessions can be seized.
Further resources
www.mhdebt.info.
Our website for tools, guidelines, links, & research.
www.adviceguide.org.uk
Citizens Advice online rights guide for all UK countries.
www.mind.org.uk/money
Mind’s money resources for people with experience of mental
distress and debt.
www.moneyadvicetrust.org
Debt and mental health resources, including best practice
guidelines for creditors and money advisers
on working with people with debt and mental health problems.
www.moneysavingexpert.com
Resources including peer forums on mental health/debt.
Booklet references
1. NHS Information Centre for Health & Social Care (2009).
Adult psychiatric morbidity in England, 2007. NHS IC.
2. Jenkins, R. et al (2008). Debt, income and mental
disorder in the general population. Psychological Medicine,
38, 10:1458-1493.
3. Mind. (2007). In the Red. Debt and Mental
Health.
4. Jenkins, R. et al (forthcoming). Journal of Public
Health.
5. Department for Trade and Industry (2005). Tackling
over-indebtedness. Annual Report. DWP: London.
6. Money Advice Liaison Group (2007). Good Practice Guidelines.
Debt Management and Debt Collection in Relation to People with
Mental Health Problems. MALG:London.
7. The text in this section is adapted from the Citizens Advice
online rights guide.
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