Advice Required - about to lose Job, how to manage debts

Finn72

Hello,
I have been informed that I am very likely to lose my job in the next few weeks and worryingly, I havent been paid for work in July - no one I work with has - the company is close to going bust.

My big concern is - and I am panicing a lot tonight having started looking at my debts - while I can manage employed, I will not be able to manage my debts unemployed, if this is the case. I don't have savings or anything to fall back on. Am terrified.

Am 44 years old. my debts are £13,000 and frankly am not sure where to turn to for help, should I lose my job, which is more than likely. I don't really have any assests to sell as I don't drive and don't own a home.

Any advice, pointers will be most appreciated.

Finn

sourcrates

Hi,

No assets, no home, no job, means there's nothing your unsecured creditors can do to you in that position, They can't take what you haven't got, so try not to worry too much about them.

You need to keep up with your essential payments, such as rent and council tax, so as not to make your current situation any more difficult.

Try and find yourself a new job ASAP !!!!

BullShark

Speak to the people you owe money to and tell them.

fatbelly

Non-priority creditors are things like credit cards, loans, catalogues, water arrears. None of these can do anything to you without a court order, which will take many months. And as Sourcrates points out, in your situation, there's not much they could do with a court order. They can have a £1 per month token offer while you are unemployed

Priority creditors are rent arrears and council tax arrears most commonly. If you have to shift priority debt to non-priority, then do so.

Sourcrates is right that the debts are not your biggest problem. You need to be looking for another job and claiming all the benefits you are entitled to while you search.

http://benefits-calculator.turn2us.org.uk/AboutYou

If you need to communicate to credtors, do it in writing and use national debtline resources

https://www.nationaldebtline.org/EW/Pages/default.aspx

If your unemployment looks to be long-term, or if the debt problems blow up, consider a Debt Relief Order - this is your fall-back position. You need to know that ultimately you have nothing to worry about as there is always a way forward.

[Deleted User]

Left one place on the 15th of a month. Not being to picky I started work the following month on the 11th with the offerer who was quickest to allow me to start. Had to use some head logic there I'm afraid but I am also fortunate in that the new supervisor had said holidays are flexible (if I need to put "it's easier to get a better job while in employment" to the test.!!)

Regarding not being paid, take a look at the Redundancy board here or google for a direct.gov link, sure I recall seeing something there about what to do or process to follow if employer going bust.

Remember they can't take what you haven't got. You are in control of your bank account - when there isn't enough money in mine, after the important payments have debited, my bank very kindly writes and says we've returned this as not enough funds in account and due to the type of account you hold, we will not charge. A godsend in strained times for sure. Though I've no hesitation things can improve for us and anyone who finds them self in similar situation.

datlex

BullShark wrote: »

Speak to the people you owe money to and tell them.

100% agree with this advice. I had to do same when I lost a previous job due to redundancy. They can help reduce your financial outlay. Obviously you do need to find a new job but this is a safety net whilst you find one and wait for redundancy to come out. You may need to apply to the government for the statutory redundancy, notice period money, lost holiday pay etc see attached link https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you

Finn72

Thanks for all the advice. Am still contemplating the pros and cons... very difficult.

Sadly, I won't be entitled to redundany, as I have only been in the job 19 months.

I haven't lost my job, yet... but it is looking likely - I think I will know for sure next Friday, 5th. Hence why I am doing prep now to be ready to start firefighting.

datlex

You should be entitled to pay for months not yet paid for, statutory notice and accrued statutory holiday pay. Those are different from redundancy,

LuckyPenny

datlex wrote: »

You should be entitled to pay for months not yet paid for, statutory notice and accrued statutory holiday pay. Those are different from redundancy,

Agree with Datlex. You are entitled to be paid for any work complete. You will either be asked to work your notice or will be paid for it. Statutory notice is a week for every full year of service, so you will be entitled to one weeks notice. You may be entitled to more if this is outlined in your contract, but given the situation the company is in I would suggest the best you will get is 1 week. They will be in breach of contract but would imagine it would be extremely difficult to claim. Give it a go though.


Any holiday that you have accrued but not taken you should be paid. You are entitled to a statutory entitlement of 28 days per year if you work full time. Pro-rated if you work part time. Holiday year should be in your contract, if not its the first day that you started work.


Get yourself registered on a load of websites and agencies. If you have an interview whilst you at risk of redundancy then you are allowed time off to attend the interview.


There's loads of free websites for writing your CV, just a few: www.monster.co.uk/career-advice/cv-writing-job-application


https://nationalcareersservice.direct.gov.uk/advice/getajob/


www.totaljobs.com/careers-advice/cvs-and-applications/which-cv



Reed offer a free CV review, I found this useful but my DH didn't worth a go. https://www.reed.co.uk/career-advice/free-cv-review-cv-help-from-cvnow/ Otherwise, register with some agencies and ask for their feedback, its in their interests that your CV is good and marketable.


Hope this helps