Redundancy while a BR

Slay1963

Hi Gang....

Am I right to assume that if I get made redundant during my 12 months of bankruptcy (or longer if restrictions apply), I will have to hand over any payment/package to the OR???

I'm expecting an IPA but redundancy is a strong possibility next year

I would get 2 weeks pay for every year worked and 12 weeks severance pay plus any holidays owed. Would I be able to keep this money or will the OR see it as an assett and snaffle it away???

Thanks

deedee_3

If I remember rightly you will be able to keep the part that is made up of your basic wage, the rest goes to the OR.

If you have an IPA and are made redundant then it will most likely be suspended so you won't have to worry about that.

JCS1

Hi,

Deedee is right, cash in bank is classed as asset.

You would get to keep basic pay and any holiday pay. OR would get redundancy and any pay in lieu of notice.

Sorry,

deedee_3

Thanks for confirming that JCS. Nice to see that you get to keep holiday pay as well.

Slay1963

OK cheers Dee and JC.....I'm still going ahead with BR (30/12) Hopefully Redundo will hang fire for 12 months

Bnjracing

Hiya

We haven't had an IPA set up (5 months in and counting) so hopefully one won't be set up, in this case once we are discharged if husband is made redundant do we have to hand any over?

startagain_2

This is really interesting as I am in a similar position myself. A number of people were made redundant before Xmas and I can see more cuts, or even a total closure of the office in the next 12 months.

We have an "enhanced" redundancy package of 2 weeks instead of 1 for each year worked. In my case a total of 3 years.

In view of the current economic climate and lack of job vacancies, it seems very harsh to take a few hundred pounds off someone when it is there to ease the period of unemployment that it is to follow - which could well be a considerable time, especially at my age - the wrong side of 50.

Is it open to negotiation, i.e at the discretion of the OR?

SA

maxmycardagain

If you go BR asap, and get an ED you could be clear by july, before redundancy actually occurs, which - of course - you wont forget to tell the OR about will you...

debt_doctor

Hi Start,

Id like to say different but............

31.5.14 Redundancy payments.

A bankrupt may argue that as he/she no longer has a job, any redundancy payment he/she receives will be his/her income. Case law has established that a redundancy payment represents compensation for loss of a job: Hindle v Percival Boat Limited [1969] 1 WLR 174, and Wilson v National Coal Board [1981] SLT 67. Although the amount of the payment is related to length of service and to the level of past salary, it does not constitute compensation for loss of earnings. A redundancy payment will be made to an employee dismissed by reason of redundancy, even if that employee immediately secures another job, and even if that job is at higher wages. 31.5.15 Protecting and realising a redundancy payment
A redundancy payment whether received before or after the making of the bankruptcy order should not therefore be treated as income and the possible subject of an income payments agreement or income payments order but as an asset and realised accordingly.
If the bankrupt has not received the redundancy payment at the date of the bankruptcy order, the official receiver should remind the bankrupt that he/she has an obligation under the provisions of section 333 to give the trustee notice should he/she acquire any property and that this includes the receipt of any redundancy payment. This reminder should be confirmed in writing. Where possible, the official receiver should obtain details of the payer, if it is a private employer or the Redundancy Payments Directorate if payment is to be made under the Employment Rights Act 1996, and arrange that the redundancy payment be made directly to the trustee.

Sorry.

DD

startagain_2

Wow - that was obviously written before any hint of a recession!!!!!

SA

Bnjracing

But where do you stand if you are made redundant once discharged and no IPA in force?