Types of non-priority debt
These are the most common non-priority debts an adviser may deal with, including:
•overdrafts;
•personal loans;
•bank or building society loans;
•money borrowed from friends or family;
•credit cards, store card debts or payday loans;
•catalogues, home credit or in-store credit debts.
Non-priority debts have less serious immediate consequences for non-payment then priority debts.
They are still important and need addressing, they are often the majority of a client’s debts. Note that non-priority creditors can eventually decide to take sheriff court proceedings against the client to deal with non-payment and enforce the judgment through the courts.