Care and support

Repaying priority items

If you are in arrears with priority creditors and you cannot clear them by large payments, one of the first things to do is to set a repayment based upon current repayment, plus a sum for arrears.

Rent and mortgage

The current weekly or monthly sum must be paid regularly, and you need to add a sum to clear the arrears by instalments.

The amount that you need to pay will vary according to different factors (including how much the arrears are, what other priorities need to be met and how much you can pay without missing those priorities).

The key is regular payment. This will gradually reduce the debt and will also show that you are committed to clearing the arrears.

If you are a tenant on income support/ income-based jobseeker’s allowance it may be possible for the landlord to obtain payment of arrears at a fixed rate direct from your benefit. At present this is £3.05 weekly.

Council tax

Is due at the start of the financial year. Your council will normally allow you to pay by instalments providing you clear the bill by the end of the financial year. If you fall into arrears you may lose the right to pay by instalments.

If you have arrears from previous years, you should also offer an additional payment to clear these.

If you cannot pay as above, you may need further advice.

If you are in receipt of income support/income-based jobseeker’s allowance the local authority may apply for payment of arrears at a fixed rate direct from your benefit. At present this is £3.05 weekly,

Gas and electricity

The fuel supplier may set a rate of weekly or monthly repayments to cover current consumption and arrears, or may insist upon the installation of a pre-payment meter to do the same job.

If you are on income support/income-based jobseeker’s allowance, payments of current fuel usage plus a fixed sum for arrears may be taken direct from your benefit. At present the sum for arrears is set at £3.05 for each debt.

If disconnection of your fuel supply is threatened, contact the supplier at once and discuss sensible repayments; if you cannot reach an agreement, seek further help.

Magistrates’ court fines

If you cannot afford the payment of a fine, you must contact the court with details of your income and expenditure and a new repayment offer. You may be required to attend a hearing so that the court can hear details of your financial situation and set a new rate of payment (see later). The court can deduct money direct from income support/income based jobseeker’s allowance (usually £5.00 per week or £3.05 in some cases).

Maintenance arrears/Child Support Agency (CSA)

Current payments should be met, plus an offer to repay arrears by instalments.

If the maintenance is payable via a court, that court’s enforcement procedures will apply.

The CSA are usually willing to negotiate repayments of arrears but will require payment of the current maintenance assessment. A flat rate for maintenance arrears can be deducted from benefits – if this applies to you, seek advice.

Hire purchase/conditional sale

To keep possession of goods on HP or conditional sale, you must usually offer the current payment plus a payment towards the arrears that will clear them within the lifetime of the agreement.

If this is not possible, you will need further advice.

You must NOT sell an item on HP or conditional sale in order to clear debts unless you have the specific permission of the lender – to do so without permission is theft!

Mortgage and rent

If arrears of rent or mortgage have grown too high the lender or landlord may apply to the county court to gain repossession of the property. You will receive papers from the court giving details of the claim, and a date and time for a hearing at the county court.

It is always advisable to attend court. You may take a representative if you wish, and your local CAB or advice centre may be able to help you.

The court hearing is your last chance to make an offer of payment to clear the arrears. The district judge of the county court will listen to both you and the creditor, and s/he will make a decision based upon the facts and the law.

The court will always offer you a chance to resolve the problem, even if the lender/landlord has not previously accepted your offer.

If your offer is accepted, possession will probably be awarded, but postponed so that the arrears may be repaid as agreed. This means that you will not lose your home providing you pay as agreed.

If your offer of repayment is insufficient, possession of the property can be ordered and eviction could take place at a later date. If you remain in your home after the date set for eviction your creditor will have to go back to court to get a warrant to evict you.

Items on hire purchase or conditional sale

If under one third of the balance has been paid, the goods can be repossessed without a court hearing.

In other cases, the creditor must seek a ‘return of goods order’ from the county court. As above, you will have a chance to attend court in order to make an offer of repayment and to have the repossession postponed.