Bankruptcy & redudancy question

Helly99

Hi all!

I wonder if you can help me. I am new to this and I am trying to help out my best friend who is going bankrupt - no it isn't me!!! Anyway, we are at the stage now when we are about to fill in the court forms to apply for bankruptcy. He has been signed off work sick for a couple of weeks now after injuring his back. He has been on and off work with it for some time over last few years. My question is, he thinks they are going to make him redundant. What is the OR position on redundancy money? Does he have to hand it over to pay off his debt? My feeling is that redundancy is meant for you to live on until you find a job but I could be wrong. I would very much appreciate any of your expertise into this matter. I'm sorry if this question has been asked before, but for the life of me I cannot find anything.

Thanks v much xxx

Wonder_Girl

Bear with me i'm having a phone round to find out...

Helly99

Ahhhh thanks!

Wonder_Girl

I have called my Official Receiver contact and it’s quite complicated. I am to call them back in half an hour to get an answer from them as they needed to check a few things.

Will let you know the update.

WG x

Helly99

I really appreciate that wonder girl, thats really good of you ***big hugs***

Needless to say he is in bits about it at the moment and I promised I'd see him after work with all the answers...d'oh!

Thanks loads xxxxx

Wonder_Girl

No probs, it's actually a really good question and well worth me knowing the answer for future reference!

Helly99

That's cool! I had searched all morning and not found anything to answer the specific question.

Wonder_Girl

Okie coke, I have an answer….

Unfortunately any redundancy money received within the discharge period (normally 3 years) will have to be handed over to the OR I’m afraid.

Sorry the news wasn’t what you wanted to hear.

WG xx