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Priority Debt
Priority debts fall into one or more of the following categories:
- Mortgage arrears. This could lead to repossession of the home.
- Rent arrears. This could lead to eviction.
- Income Tax and VAT arrears. This could lead to imprisonment.
- Unpaid fines, e.g. fines set by magistrates court. Unpaid court fines could lead to repossession of goods or even imprisonment.
- Unpaid maintenance payments (eg Child Support) or Council Tax. This could lead to repossession of goods or even imprisonment.
- Utilities debts. This could lead to the supply being disconnected.
- Hire purchase arrears if the item is an essential one. This could lead to repossession of the item.
- TV licence.
Priority debts must be paid off before any non-priority debts.
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