Redundancy Payments & Bankruptcy

charley_babe

Hi guys,

I need a little advice and don't know who to ask. I would really appreciate your help.

I have been made redundant and received a lump sum from my past employer which is made up of a compensatory payment for the redundancy, cash instead of holiday taken, cash instead of pension payments and payment in lieu of notice.

I am planning on going bankrupt due to my financial mess.

Will this money go the official receiver?

If I was to spend some of it on a holiday would they be cross?
What would they do if I did this? I am so depressed and stressed out I desperately need a holiday. I have a stomach ulcer due to stress and my chronic fatigue is getting worse by the day and think if I de-stressed on a holiday it might help. But what would the Official receiver do??

If someone could tell me where I stand I'd really appreciate it.

Thank you!!

Charlotte

sizzler

Hi there have you taken advice from any of the debt charitys?

Obviously taking a holiday with the money would be unwise if you are going BR. If it was needed for essentials such as food or gas in cold weather the OR would be ok. Please seak advice from any of the charity advisors on the stickys at top of forum before you do anything.

Please ask any further questions as you progress.

regards sizzler:)

charley_babe

Hiya,

I have spoken to payplan previously, but not about the lump sum.

I've tried to see the CAB about getting the ball rolling with the BR paperwork but they cannot help me with that until I know how much I will get on the JSA etc.

I'll def do as you suggest (contact one of the charity advisors).

Many thanks

Charlotte

andyf1980

I had a similar situation where I used my severance to live on for 6 months before I went br. To be totally honest I wish I had gone br straight away. It was a foregone conclusion for me so all I've done is to delay my discharge.

charley_babe

It's such a pain in the backside. I want to go BR now, but can't as the CAB wont do anything until I hear if I qualify for JSA etc.
I want to get started now. I just feel I have earned the holiday money that I was given from my employer at least and need to chill. But I guess the OR will think I've taken the pee enough already ((

davidgmmafan

As adv I'd be more concerned about making sure priority debts are paid. If you are up to date on those and you waste the money or try to hide it you could find yourself in very deep doo doo.

Could you not have a very cheap weekend away? There are some very good offers on coach holidays or B & B's? Just a thought. Keep us posted

debtinfo

Could you use the money to make offers to your creditors in final settlement

now

charley_babe wrote: »

Hi guys,

I need a little advice and don't know who to ask. I would really appreciate your help.

I have been made redundant and received a lump sum from my past employer which is made up of a compensatory payment for the redundancy, cash instead of holiday taken, cash instead of pension payments and payment in lieu of notice.

I am planning on going bankrupt due to my financial mess.

Will this money go the official receiver?

If I was to spend some of it on a holiday would they be cross?
What would they do if I did this? I am so depressed and stressed out I desperately need a holiday. I have a stomach ulcer due to stress and my chronic fatigue is getting worse by the day and think if I de-stressed on a holiday it might help. But what would the Official receiver do??

If someone could tell me where I stand I'd really appreciate it.

Thank you!!

Charlotte

A holiday is a no go but living expenses and BR fees is OK

987654

I note your comments about being stressed etc. and needing a holiday. However you are going BR as you spent more than you have had coming in.

You have spent the money, have you thought that you have a responsibility to pay back whatever you can?

ani_26

987654 wrote: »

I note your comments about being stressed etc. and needing a holiday. However you are going BR as you spent more than you have had coming in.

You have spent the money, have you thought that you have a responsibility to pay back whatever you can?

I agree, a holiday, is not a good idea. I personally have'nt ' been on holiday ' for many, many years, as maybe many people have'nt.


However, if people could meet with the responsibilty, to pay back whatever they can ,there would be no such word or state as bankruptcy. There would be no need for a bankruptcy forum. No need for a debt forum. Maybe even no need for the money saving expert website. No need for any of us to be here.

Unfortunately, we don't live in a perfect world, with perfect people, nor do i profess to be perfect, myself.

But what is the ultimate price anyone can pay?

now

987654 wrote: »

I note your comments about being stressed etc. and needing a holiday. However you are going BR as you spent more than you have had coming in.

You have spent the money, have you thought that you have a responsibility to pay back whatever you can?

Most who go br spend more then they have coming in, are you br?