Step 1 - Make a complete list of your debts

Divide them into two groups - priority and non-priority debts. Although we've included the most common types of debt our lists aren't totally comprehensive, so if you want any clarification for your own situation contact your local CAB.

Priority debts are debts owed to creditors who can take the strongest legal actions against you if you do not pay, e.g. prison, re-possession of your home etc. Examples are:

You must make arrangements to pay off your priority debts before you make any offers or agreements for your non-priority debts.

Examples of non-priority debts are:

You can't be imprisoned for not paying non-priority debts. You are unlikely to lose your home or your essential belongings. However, if you don't pay or don't make any offers to pay, without explaining why, the creditors could take you to court and eventually bailiffs would be sent in and could take your possessions, or you could have a charge put on your property.

If you wish, you can use our Excel Creditor Summary Sheet for this. Print it and fill it in, or record the information on your computer.

Note: The people and organisations you owe money to are called your "Creditors"

Forward to Step 2 - List All Income & Expenditure

Back to the main Debt Kit Page