craig_i, I am not an expert, but I do know that if you don't pay your mortgage and any loans secured to that property, they do reserve the right to take posession of that house. I am confused about your question about preferential creditors. Do you mean, you are not paying them because this would give them a preference over your unsecured debt? If this is what you mean you are in error. The mortgage and any loans secured to your house are priority creditors. What this means is you MUST pay them before you pay your unsecured debts. If you don't they can start legal procedures against you for the arrears and the property.
Council tax is a priority creditor as well. Fall behind without an agreement with them and you will receive a court summons. Your utilities are priority creditors because you need those services to live day to day. I hope this helped some.
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Take care.
All I have left is my humour.
