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Company Debt
Debts come in a variety of types but in general terms they can be categorised as priority and non-priority debts. Knowing how to categorise your debts can be a great help in protecting you and your hard-earned assets.
An example of a priority debt would be a mortgage on your house or commercial property. This is also often referred to as a secured debt because you property provides a guarantee of repayment. Should you default the bank can seek to take possession of your property in order to settle that debt.
Other priority debts include any tax payments including payments to Her Majesty Revenue & Customs. The law provides these entities the authority to seek property in lieu of payment and seizures can happen without a court order. They can also seek an involuntary bankruptcy to force you to pay the outstanding debt.
Non-priority debts typically involve credit card debt and various other lines of credit. These are unsecured and as a result the creditor has fewer options for trying to force to you repay. This is why the interest rates are generally much higher for these types of credit lines. Since they are unsecured they are riskier and cost more.
There is a class that is somewhat in between these two but would most appropriately be classed as a priority or secured debt. When you purchase supplies on credit the supplier technically owns those supplies until the point that the invoice is paid. If you default on that payment the supplier may have the right to recover those supplies.
Knowing what types of debt you have is key to knowing how to get out from under them and with the right advice you can find your way out from under.
Insolvency Network has been guiding people just like you through the intricacies of financial products for over 7 years and we have NEVER failed to deliver excellent advice that results in great personal protection.
You may be wondering how we have achieved such a perfect record and the answer is really quite simple. We are a team of highly qualified financial advisors that work exclusively for our clients.
We understand the ins and outs of all types of financing better than just about any other team you can work with and we apply this expertise to your greatest advantage. And, if it does come down to having to settle with your creditors, we have the negotiating skills you need.
Find out more with a 100% free consultation with our expert team. This is a no obligation consultation that will deliver amazing value and all it takes on your part is a simple call. Do it today, you owe it to yourself, your business and your family.
