Redundancy whilst in bankruptcy

honeypeony

Dear forum members!

There's going to be few redundancies at company I work for and I might be one of those that goes. So obviously I'm nervous about it due to still being in bankruptcy till April and can't afford to lose my job as I'm aware of redundancy payment is classed as after bankruptcy acquired asset and it will go to bankruptcy estate leaving me without anything. Therefore I have to ask - as I'm not paying any IPA , is it possible to hide that redundancy money from OR? For example agreeing with my company to pay money out to my friend's bank account? Will it come out to surface? Thank you in advance!

Flyright

That would be breaking the law.

National_Debtline

Hi honeypeony


I understand your concerns but it's never advisable to be dishonest with the OR. It could lead to a bankruptcy restriction order (BRO) which would extend the restrictions you are under during bankruptcy for between 2 to 15 years.


I do hope that your job is not one of the ones made redundant.


Best wishes


Susie
@natdebtline

debt_doctor

Hi,

If it was discovered that you hid the money from the OR, it could lead to you being criminally prosecuted.

A redundancy payment is not classed as income, it is claimed in full as an asset (as you quite rightly say 'after acquired property').

I hope you keep your job - or if not, hope youre not made redundant until you are discharged.

DD

joa1210

if you are made redundant surely they take into account the fact that you will be earning nothing and it would be used to for example pay rent upfront as you would be put into financial hardship?
i suppose it depends on the potential payout.

debt_doctor

joa1210 wrote: »

if you are made redundant surely they take into account the fact that you will be earning nothing and it would be used to for example pay rent upfront as you would be put into financial hardship?
i suppose it depends on the potential payout.

I'm afraid not. The redundancy payment would be claimed in full, it happens often. The OR would not have a concern for the future rent, they would expect the bankrupt to claim Housing Benefit (if eligible) and to pay the rent themselves if not.
I of course would like to see something along the lines you suggest, but it doesn't happen.

DD