Redundancy during 3 year IPA

jpr_74

Hello,

I am just about coming into the 3rd and final year of my bankruptcy IPA and I am paying Moonbeever.

I have just found out that I am being made redundant within at least the next 90 days. I am expected to receive some redundancy pay as a result after I lose my job as I have been with my employer for 12 years.

Where do I stand with the IPA on income and expenditure? Am I expected to keep paying Moonbeever the normal payments or a reduced rate dependent on what money I would receive for being unemployed and possibly dole money or something, up until I get back into work?

Has anyone had any experience of this with Moonbeever, or just generally?

Hope this all makes sense - thanks for reading!

debtinfo

good news, well not the part about losing your job but

31.7.55

Redundancy payments to be claimed as a bankruptcy asset
(amended February 2012)
With regard to redundancy payments, it should be noted that any periodic payments in respect of redundancy represent compensation for the loss of a job (see Chapter 31.5, paragraph 31.5.14), and a redundancy payment whether received before or after the making of the bankruptcy order is an asset of the bankruptcy estate and should be realised accordingly, it should not be treated as income or be included in an IPA. See Chapter 31.5 paragraph 31.5.15. Where redundancy occurs after the making of the bankruptcy order, any redundancy payment may be claimed as an after-acquired asset.

What that basically means is that a redundancy payment is an asset not income, so if you were undischarged it would be claimed but since you are discharged it is not part of the IPA calculation since that only involves income.

Therefore presuming you have no other source of income the ipa will be suspended until either the 36 months run out or you get new income when the IPA will be reassessed as appropriate depending on the level of that new income

curly04

Hi
I was made redundant in year 2 of my IPA they just asked me to pay the balance off in full £71 x 19 payments and it was finalised after that

jpr_74

debtinfo wrote: »

good news, well not the part about losing your job but

31.7.55

Redundancy payments to be claimed as a bankruptcy asset
(amended February 2012)
With regard to redundancy payments, it should be noted that any periodic payments in respect of redundancy represent compensation for the loss of a job (see Chapter 31.5, paragraph 31.5.14), and a redundancy payment whether received before or after the making of the bankruptcy order is an asset of the bankruptcy estate and should be realised accordingly, it should not be treated as income or be included in an IPA. See Chapter 31.5 paragraph 31.5.15. Where redundancy occurs after the making of the bankruptcy order, any redundancy payment may be claimed as an after-acquired asset.

What that basically means is that a redundancy payment is an asset not income, so if you were undischarged it would be claimed but since you are discharged it is not part of the IPA calculation since that only involves income.

Therefore presuming you have no other source of income the ipa will be suspended until either the 36 months run out or you get new income when the IPA will be reassessed as appropriate depending on the level of that new income

Thanks, I called Moonbeever and my receiver today, and they said that they could not tell me either way whether I would have to pay them anything extra from any redundancy compensation from my employer - they kind of convinced me that I would have to!

The way they told me was that any redundancy payment I get would be classed as income....

debtinfo

Well i would ring the OR back and read that section to them, it is from their own technical manual so they can look it up themselves

jpr_74

debtinfo wrote: »

Well i would ring the OR back and read that section to them, it is from their own technical manual so they can look it up themselves

Thank you, I shall wait until I know what I am getting and then go from there!