Redundancy, Bankrupt Employer and Monumental Debts

Eric_Pisch

Hi

A family member was made redundant yesterday after there boss came in and notified them they had gone bankrupt. They have done the usual of flipping the company and its assets etc so in reality all they have done is made a third of the workforce redundant without having to pay them.

Been searching on here and found out they have to fill in form RP1 to claim some money for this months wages, outstanding holiday and lack of notice.

Here comes the question bit, as luck would have it they guessed this could happen and already have a new job to go to but they are going to be 8-12 weeks (this month owed, a month before the new job starts and then the first month of work) with no income a maxed out overdraft and many loans and credit cards with scores of missed payments. Can they contact all the company's they owe money to and inform them that they can not pay anything for 2-3 months but have work soon after that. Is there any standard mechanism for doing this? They have restructured there lifestyle and will be in a position to be debt free in 6-9 months of starting work.

Oh and dont ask for a soa, I have been asking for 3 years ...

MrsTinks

They can send them the standard letter explaining they can only pay £1 a month between now and then etc - what it WILL mean is defaults on every account they are unable to meet minimum payments on.
Best bet is to call all the creditors NOW and explain the situation to them - some of them may be more understanding but there is no guarantee!

fermi

There is also advice and some sample letters that might be useful to adapt on the NDL website:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Although their situation is temporary, if the can show they are talking to some of the organisations in my sig then that may help a little with some creditors.

Eric_Pisch

Thanks some great advice there

Will let you know how they get on

Eric_Pisch

If theres 6 weeks of no work between the redundancy date and the new start can they sign on and get JSA etc?

pmlindyloo

This may help?

Claiming redundancy pay if your employer has stopped trading

If your employer has gone out of business (is insolvent) and an administrator or liquidator has been appointed, you should claim your redundancy pay from the National Insurance Fund. You can contact the Fund's Redundancy Helpline on 0845 145 0004. You can download a form for a claim at the website of the Insolvency Service at: www.insolvency.gov.uk.
If your employer has stopped trading but is not insolvent, write to your employer claiming your statutory redundancy pay. If your employer doesn't make the payment, you can make a claim to an employment tribunal. You must do this within six months of the date your employment ends.
If an employment tribunal decides that you have the right to statutory redundancy pay but your employer still doesn't pay it, you can make an application to the National Insurance Fund for your redundancy payment.

adviceguide.org.uk

Eric_Pisch

pmlindyloo wrote: »

This may help?

Claiming redundancy pay if your employer has stopped trading

If your employer has gone out of business (is insolvent) and an administrator or liquidator has been appointed, you should claim your redundancy pay from the National Insurance Fund. You can contact the Fund's Redundancy Helpline on 0845 145 0004. You can download a form for a claim at the website of the Insolvency Service at: www.insolvency.gov.uk.
If your employer has stopped trading but is not insolvent, write to your employer claiming your statutory redundancy pay. If your employer doesn't make the payment, you can make a claim to an employment tribunal. You must do this within six months of the date your employment ends.
If an employment tribunal decides that you have the right to statutory redundancy pay but your employer still doesn't pay it, you can make an application to the National Insurance Fund for your redundancy payment.

adviceguide.org.uk

thanks for that but i think that's the RP1 form i mentioned, i was referring to general unemployment benefit

tallyhoh

Eric_Pisch wrote: »

If theres 6 weeks of no work between the redundancy date and the new start can they sign on and get JSA etc?

No reason why they shouldnt, they are not working yet. Make a claim ASAP.

Try running details through www.entitledto.co.uk to see what else may be available.

RAS

Yep

Even if they only get a Council tax rebate sorted after they get back to work, it will still reduce the debts, ditto rent.