If a creditor is chasing you for an old debt, it may be "statute barred," meaning they can no longer take you to court to force you to pay. In England and Wales, most unsecured debts become unenforceable after six years under the Limitation Act 1980 if you have not made a payment or acknowledged the debt in writing during that time.
A Penalty Charge Notice (PCN) is a fine for a parking or traffic offence. It is treated as a non-priority debt because not paying it will not lead to imprisonment, loss of essential services, or loss of your home. However, ignoring a PCN can lead to increased charges and bailiff action. Contact us for free advice.
Phone debt is usually treated as a non-priority debt, because pay-as-you-go mobiles are a flexible alternative if your contract is cancelled or your landline is disconnected. However, if you rely on your phone for essential services (such as internet access bundled into the contract), it could be treated as a priority. Contact us for free advice.
Overdraft debt is a non-priority debt, like loans and credit cards, because it is not secured against any of your assets. However, if your account is overdrawn, your bank may use your income to reduce the overdraft before you can spend it. Contact us for free advice on protecting your income.
Unsecured loans and credit cards are debts that are not tied to your home or another asset. They are usually non-priority debts, but if you stop paying, your creditor can take you to court and your credit rating will be affected. Contact us for free advice.