Bankruptcy and redundancy?

Taylorj75

I went bankrupt in November last year and now work has asked me to take redundancy?

Where do I stand with having a lump sum paid to me?

Any help would be great as I've tried asking my insolvency agent and they can't give me a straight answer.

debt_doctor

Hi,


As you are currently bankrupt any redundancy payment would be seized in full as an asset.
Sorry that is not what you want to hear, of course you could say no to redundancy, but if you are made compulsory redundant whilst bankrupt then the money will be seized.
Hope it works out.
DD

Taylorj75

Even if you are going to retire? I'm 63 and was thinking of taking the redundancy and giving up work.

TheGardener

Taylorj75 wrote: »

Even if you are going to retire? I'm 63 and was thinking of taking the redundancy and giving up work.

Are you paying an IPA - if so then this will be very hard as DD says. If you are not paying an IPA then you need to wait until you are discharged if that is at all possible?

Is there any way to negotiate with your employer to delay/postpone your redundancy or early retirement until after your AD. Once you are AD and as long as you are not still paying an IPA you can take the redundancy without penalty I think.
If its got to be now then it might be worth exploring if extra payment can be paid into your pension rather than a lump sum to you?
You need more advice or you stand to lose the lot.

Taylorj75

Unfortunately the redundancy can't be delayed its come at the worst possible time for me. Also I've been told in work my job role is going but we will have a lump sum in May to cover the short fall of dropping down from a team leader to a customer assistant. I'm looking at having 5000 after tax and national insurance.

Would this also be classed as an asset?

TheGardener

I'm afraid its not good new then. I suggest you talk to your employer about the possibility of you receiving a lump sum into your pension rather than paid to you - it might work.
As for having a lower income, once this happens, tell the OR about the change in circumstances (has to be done within 21 days of it actually happening)- and your IPA will be reduced accordingly.

GoldenShadow

Taylorj75 wrote: »

Unfortunately the redundancy can't be delayed its come at the worst possible time for me. Also I've been told in work my job role is going but we will have a lump sum in May to cover the short fall of dropping down from a team leader to a customer assistant. I'm looking at having 5000 after tax and national insurance.

Would this also be classed as an asset?

Team leader roles still exist in Express. There are internal vacancies around because I know in one area there is an external recruitment freeze on TL's. Just in case you wanted to ask Personnel and see what's around locally.