Non-priority Debts
If you have a creditor who is not one of those listed
above in Repaying Priority Items, they are an unsecured or non-priority
creditor. This means that you owe them money, but they have no
security against
your
home or your goods, and cannot repossess them.
Unsecured creditors include:
- Personal Loans
- Credit Cards
- Store Cards
- Charge Cards
- Catalogues/Mail Order
- Bank loans and overdrafts
- Buy Now Pay Later
- Unsecured creditors include lenders who collect money on the
doorstep!
No creditor likes to be offered less than was originally agreed,
but they will usually negotiate if you are acting in good faith
and are genuinely unable to pay.
The method of making an offer of repayment is covered later -
the principle is that every unsecured creditor should receive an
offer of payment but that they can only ask for a fair share of
your spare income.
To decide what your spare income is you need to set down your
income and expenditure in a financial statement.
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