7. Dealing with priority debts
The next stage of the debt advice process is to deal with those debts that are described as priorities. See Chapter 8 for more on this. This ensures that the threat of homelessness, the loss of goods or services or the threat of imprisonment is removed. It is essential that arrangements for dealing with these debts are negotiated at this stage so that any extra payments for priority debts can be included in the expenditure details before they become part of a financial statement (see here). However, a financial statement may be needed when negotiating priority debts, and this stage of the process can therefore overlap with Stage six above. Explain each available strategy, along with its advantages or disadvantages, to the client. S/he may need to consult with a partner or other family member, and strategy information may need to be written down. Once agreed, you can then implement the strategy by negotiation or a court application and the client must carry out her/his own agreed course of action – eg, start paying rent or set up direct debits. You must always confirm with the creditor, in writing, a strategy agreed verbally, and request an acknowledgement confirming this. Advise the client to start making any agreed payments immediately and not wait for confirmation from the creditor.