Guide · 6 min read
Priority debts: which debts to deal with first
Which debts are priority debts in England and Wales, why they come first, what can happen if you don't pay them (including bailiffs), and how to deal with them alongside your other debts.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 4 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
Key points
- Priority debts are the ones with the most serious consequences if you don’t pay – such as losing your home, having your energy cut off, bailiffs, or even prison.
- They include council tax, rent and mortgage arrears, gas and electricity, magistrates’ court fines, TV licence, child maintenance and tax.
- Deal with priority debts before non-priority debts like credit cards and loans, even if those creditors are chasing harder.
- Many priority debts can be included in Breathing Space, a DRO or an IVA – but magistrates’ court fines can’t.
Why some debts come first
When money is tight, it’s natural to pay whoever is shouting loudest. But some creditors have much stronger powers than others. A credit card company usually has to go to court before it can do anything serious. Your council, your landlord or the magistrates’ court can move much faster – including sending bailiffs.
That’s why debt advisers sort debts into priority and non-priority.
The main priority debts
| Debt | What can happen if you don’t pay | Can bailiffs be used? |
|---|---|---|
| Council tax | Liability order, bailiffs, deductions from wages or benefits; in England, prison in rare cases | Yes |
| Rent arrears | Eviction | Only for commercial rent; court bailiffs or HCEOs carry out evictions |
| Mortgage and secured loan arrears | Repossession | For repossession, yes |
| Gas and electricity | Prepayment meter, or disconnection in rare cases | Not usually |
| Magistrates’ court fines | Bailiffs, deductions from wages or benefits, prison for wilful refusal | Yes, including forced entry as a last resort |
| TV licence | Prosecution and a fine | Through the fine |
| Child maintenance (CMS) | Deductions, bailiffs, loss of driving licence or passport | Yes |
| Income Tax and VAT | HMRC enforcement, including taking control of goods | Yes |
| Hire purchase or logbook loan (if you need the item) | Repossession of the goods | Repossession, not bailiffs |
Council parking penalties are civil debts, not criminal fines, but they’re enforced by bailiffs quickly once a warrant is issued, so treat them as a priority at that stage. Read parking fines and bailiffs.
Non-priority debts
These include credit cards, personal loans, overdrafts, catalogues, buy now pay later, payday loans, store cards and money owed to friends or family. Water bills are usually treated as non-priority, because water companies can’t disconnect households in England and Wales – but they can still take court action.
Non-priority creditors can still take you to court and get a county court judgment (CCJ). If you don’t pay a CCJ, the creditor can apply for enforcement, including bailiffs. So non-priority doesn’t mean “ignore” – it means “deal with after the priority debts”.
Council tax: the debt most likely to lead to bailiffs
Council tax is the most common reason bailiffs are sent. Councils passed 1.72 million council tax debts to bailiffs in 2025/26 (Money Advice Trust), and council tax arrears in England reached £7.4 billion by 31 March 2026 (MHCLG).
The process moves fast. If you miss an instalment, you get a reminder. Miss again and you can lose the right to pay in instalments, so the whole year’s bill becomes due. The council can then get a liability order from the magistrates’ court and use bailiffs.
In Wales, prison is no longer used for council tax debt – it was abolished in 2019. In England, it remains possible but rare, and only where a court finds wilful refusal or culpable neglect.
Read our full guide: council tax arrears and bailiffs.
Magistrates’ court fines: special rules
Fines for criminal offences (for example, for driving offences or not having a TV licence) are different from other debts:
- bailiffs collecting them can force entry as a last resort
- they can’t be included in Breathing Space, a DRO, an IVA or bankruptcy
- not paying can lead to arrest and prison in serious cases
If you’re struggling, contact the court fines office straight away. You can ask to pay in affordable instalments, ask for deductions from your benefits, or ask for the fine to be reviewed if your circumstances have changed. If you didn’t know about the case, you may be able to make a statutory declaration to reopen it.
How to deal with priority debts
- Work out a budget. List your income and essential spending, including your current bills.
- Keep paying your current costs – this month’s rent, council tax and energy – so arrears don’t grow.
- Offer affordable payments towards the arrears on each priority debt, starting with those with the most serious consequences.
- Use the help available: Council Tax Reduction, discounts and exemptions, energy supplier hardship funds, Discretionary Housing Payments and benefit checks.
- Get advice about formal options. Breathing Space can stop most priority creditors for 60 days, and a DRO or IVA can include council tax, rent and energy arrears.
Guides to specific debts
- Council tax: summons, liability orders, can you go to prison?, deductions from benefits and Council Tax Reduction
- Fines: can’t pay a magistrates’ court fine?
- Tax: HMRC debt enforcement
- Child maintenance: CMS enforcement of arrears
- Energy: behind on energy bills? Prepayment meter rules
- Non-priority debts: credit card debt, car finance and debt collection letters
Frequently asked questions
Is council tax a priority debt?
Yes. It’s one of the most important, because the council can use bailiffs, take money from your wages or benefits, and in rare cases in England ask a court to send you to prison.
Are parking fines priority debts?
Council parking penalties are civil debts, but they’re enforced by bailiffs once a warrant is issued, so they should be treated as a priority at that stage. Private parking “charges” from car park companies are different – they need a county court judgment before any enforcement.
Is a CCJ a priority debt?
The underlying debt is usually non-priority, but if a creditor applies for a warrant or writ, bailiffs can be sent. Respond to court papers and get advice quickly.
Should I pay my credit card or my council tax first?
Your council tax. Missing council tax payments can quickly lead to bailiffs and extra costs. Speak to your credit card provider and explain you’re prioritising essential bills.
Sources
- Money Advice Trust, FOI research on council bailiff referrals (August 2026): moneyadvicetrust.org
- MHCLG, Collection rates for council tax and non-domestic rates in England, 2025 to 2026
- GOV.UK, Bailiff powers when they visit your home
- GOV.UK, Options for paying off your debts
How we wrote this guide
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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