Priority debts
Some debts can cost you your home, your energy supply or a court penalty. This section explains which ones they are and why free advisers deal with them first.
Priority debts are the debts that can lead to the most serious consequences if you do not pay them, such as losing your home, having your energy supply affected, or money being taken from your wages or benefits without a court case. That is why free debt advisers in Scotland deal with them first, before credit cards, loans and other debts.
Worried about your home right now? If you have a letter about eviction or repossession, or court or tribunal papers, look for the date on it and get help today. Free, impartial advice is available: see where to get free debt advice.
What makes a debt a priority?
It is not about how much you owe, but what the creditor can do if you stop paying. For example:
- Your home. A landlord can ask a tribunal or court to evict you for rent arrears, and a mortgage lender can ask the sheriff court for the right to repossess.
- Your energy. Ofgem says a supplier can fit a prepayment meter because of debt only as a last resort, to avoid disconnecting your supply.
- Fast enforcement. Councils collect council tax arrears with a summary warrant, granted without a court hearing, and the DWP can take benefit overpayments from your benefits or wages.
Credit cards, loans and buy now pay later still matter, but the creditor usually has to take you to court before sheriff officers (the court officers who enforce debts in Scotland) can act. See types of debt.
Scotland is different. Scots law does not allow imprisonment for a civil debt, apart from narrow exceptions (Debtors (Scotland) Act 1880, section 4, as amended). Rent, mortgages, council tax, energy and credit are civil debts. Unpaid court fines are criminal penalties, and a court can impose imprisonment where a fine is not paid, although Citizens Advice Scotland says this is rare.
Which debts are priority debts in Scotland?
The usual list includes:
- rent arrears
- mortgage arrears and other loans secured on your home
- council tax arrears, and the water and sewerage charges collected with it (see council tax arrears in Scotland)
- gas and electricity arrears with your current supplier
- court fines
- child maintenance
- TV licence payments
- tax owed to HMRC, including tax credit overpayments
- benefit overpayments: advice services differ on whether most of these are priority debts, but the DWP can recover them from your benefits or wages without going to court, so deal with them early (see benefit overpayments)
- hire purchase or conditional sale agreements, where the goods can be taken back
Phone or internet bills can also be a priority if you rely on the service, for example for work or health reasons.
Why deal with them first?
Because the consequences are harder to undo. A free debt adviser will usually start with a budget that covers your rent or mortgage, council tax and energy, then look at what is left for other creditors, even if a card company is the one phoning every day.
Can priority debts go into a debt solution?
Often the arrears can, but your ongoing bills cannot. mygov.scot says missed payments of rent, mortgage, council tax and utilities can be included in the Debt Arrangement Scheme, while current bills are paid separately. Court fines are never written off. A moratorium on diligence gives 6 months’ protection from new diligence (legal enforcement), but it does not block eviction or repossession proceedings.
Every option has conditions and drawbacks, so an adviser needs to look at your whole situation first. See choosing between the Scottish debt solutions.
Official sources
Guides in Priority debts
- How long can council tax debt be chased in Scotland? The 20-year rule for council tax, when it starts, and what to check on an old bill.
- Rent arrears in Scotland What landlords must do before eviction action, and where to get help with your rent.
- Can you be evicted for rent arrears in Scotland? The rent arrears eviction grounds, notice periods and what the tribunal or court looks at.
- Mortgage arrears in Scotland What lenders must do, how repossession works in Scotland, and help to keep your home.
- Benefit overpayments How overpayments are recovered, how to challenge them, and how debt solutions treat them.
Common questions
Should I pay my credit card or my rent first?
Advice services treat rent as a priority because falling behind can put your home at risk, while missing a credit card payment usually leads to charges, letters and damage to your credit rating. Card companies can still take court action, so do not ignore them, but a free debt adviser will normally make sure your home and essential bills are covered before looking at credit debts.
Can I go to prison for debt in Scotland?
Not for an ordinary civil debt such as rent, a mortgage, council tax, energy bills, loans or credit cards. Scots law has not allowed imprisonment for civil debt since 1880, apart from narrow exceptions. Unpaid court fines are different because they are criminal penalties, and Citizens Advice Scotland says deliberately refusing to pay child maintenance you can afford can also lead to prison.
Are priority debts written off in a debt solution?
It depends on the debt and the solution. Arrears of rent, council tax and energy can often be included in formal Scottish solutions, but your ongoing bills must still be paid. Some debts, such as court fines and debts caused by fraud, are not written off at all. An adviser can explain how each of your debts would be treated before you choose anything.