4. Stage 4: listing creditors and priority and non-priority debts
It is important to identify all the people the client owes money to, including family members and friends. All creditors must be listed even if they are not in arrears with payments. This involves dividing all of the client’s debts into priority and non-priority debts and taking copies of the most recent statements and letters from creditors.
Priority debts carry the most serious consequences if the client does not pay them. These may not be the largest debts or the debts with the highest interest rates. These are debts which can lead to serious problems for the client if they are not paid.
This section looks at how to identify priority debts and options for dealing with both priority and non-priority debts.