Undischarged BR - Potential Redundancy

Chaz001

Just looking for some guidance, there have been rumours of redundancies within my workplace.

I will be automatically discharged in January 2014.

Redundancies are not likely to happen till February 2014 due to consultation period etc etc.

I know that I would need to inform OR if I am made redundant, just wondering what happens in terms of IPA currently in place and what happens with regards to any redundancy pay outs? would I need to pay this all to the OR? or would I be allowed to keep some for living expenses till I find a new job.

Any information would be greatly received.

TheGardener

Hi
the IS website has a lot of info on this but if it happens after your discharge, I don't think it can be included but you would need one of the pros on these boards to answer that one. Try looking here http://www.insolvency.gov.uk/freedom..._2.htm#31.5.14

National_Debtline

Hello there.

If you have a change in circumstances, such as a reduction in income, the Official Receiver would be able to review the amount you pay into the IPA - or even stop you from having one altogether.

As far as redundancy payments are concerned:

• Redundancy payments are compensation for loss of a job. They are not compensation for loss of earnings. Therefore redundancy payments should not be treated as income and should not to be the subject of an income payments agreement or order. However, depending upon when the last day of employment falls, redundancy payments may be treated as a bankruptcy asset.
• As your last day of employment is likely to be between the date of the bankruptcy order and the date of discharge, the redundancy payment could be claimed by the official receiver or trustee as 'after acquired property'. The official receiver or trustee must be satisfied that the amount they claim as after acquired property does not include any amount payable in respect of wages received whilst you work out a notice period, holiday pay or arrears of wages. Amounts received in respect of such payments should be included in any assessment of income and outgoings for an income payments agreement or order.

I hope you find this information useful, if you have any further queries please feel free to ask.

Best wishes,

David @ NDL.