Redundancy and IPA

newuser78

I posted this in Redundancy board but was advised to try this board so here goes...

To cut a long story short, I declared for bankruptcy last year after some difficulty with paying the mortgage (with 3 partners who went AWOL leaving me to tackle the whole mess, bad legal advice, etc.).

Since then, I have been discharged from bankruptcy (Nov 2008) although I am still bound by an IPA agreement where I am to make a monthly payment for 3 years (just over 2 years left).

Unfortunately, due to the recession, earlier this week several members of staff were made redundant, and I am one of them! Next month, I will receive my redundancy package along with my usual salary.

What should/would happen to this money? Ideally I will find a job very soon (well I am going to try my hardest!) but with recession set to get worse... who knows?

Many thanks in advance for any advice!

fiveyearplan

Hi newuser and welcome. I'm not really sure what will happen to your redundancy. Why don't you give the insolvency service an anonymous call and see.

newuser78

Many thanks for your response. I guess whatever happens, I have a duty to inform them.

Let's just hope they see my redundancy (it is only 500) as something for me to survive on in the coming tough months rather than something as a surplus.

fiveyearplan

If I had a redundancy payment of £500 I wouldn't mention it. (I'm saying thats what I'd do, not necessarily what I would advise you to do!). It would be different if it was thousands but £500 won't get you very far if you don't have a job.