Priority vs non-priority debts — the difference
Not all debts are the same. UK debt advice divides debts into "priority" and "non-priority" — and the difference matters when deciding how to deal with them and whether bankruptcy helps.
Priority debts
Priority debts carry serious consequences if unpaid:
- Mortgage or rent arrears — you could lose your home.
- Council tax arrears — bailiffs and, in extreme cases, prison.
- Gas and electricity arrears — your supply can be cut off.
- Court fines — enforcement and possible imprisonment.
- Child maintenance and CMS arrears — bailiffs and deduction from benefits.
- Income tax, National Insurance and VAT — HMRC enforcement.
- Secured loans or hire purchase on essential vehicles — items can be repossessed.
These are not all written off by bankruptcy — some are recovered in different ways and you may remain liable even after discharge.
Non-priority (consumer credit) debts
Non-priority debts have less drastic remedies:
- Credit cards and store cards
- Personal loans and overdrafts
- Payday loans
- Catalogue credit
- Water bill arrears (disconnection is rare)
- Private parking charges
These are written off fully in bankruptcy unless secured.
Why this matters
If you have substantial priority debts, bankruptcy alone may not solve your problem — these do not always disappear. A debt adviser can look at your full picture.
If most of your debts are non-priority and your surplus income is low, bankruptcy often makes sense.
How to handle them
- Always ensure your priority debts are paid first, even if non-priority creditors are louder.
- For non-priority debts, contact creditors, request a payment plan, and keep evidence.
- Use the Surplus Calculator to know what you can afford.
- If you cannot pay both — bankruptcy, a DRO, an IVA or a DMP may help.
Get advice
Free charities like StepChange (0800 138 1111) and National Debtline (0800 808 4000) help with both priority and non-priority debts across England & Wales.
England & Wales only. General information, not legal advice.