Redundancy 1 July at 7:28PM in Bankruptcy & Living With It 4 replies 203 views

BigMac68

Well since I posted yesterday about how to split our income - I have been told today that I am being made redundant on the 12th August - so all change. Can anyone advise how this will work now when I press the button which will be in the next week or two. Will the OR take all the redundancy pay I get - and leave me nothing to live on while I look for a new job ? Thought I was anxious before but now feel like I have been tipped over the edge ! Any advise appreciated - thanks

fatbelly

Unfortunately - yes. 'a redundancy payment is not “income” but property which vests in the trustee in bankruptcy' - is a direct quote fromthe technical manual.

I think throwing bankruptcy into the mix at the time when there is so much else going on in your life would be a mistake.

Why not take the redundancy money, look for a new job and go bankrupt when things are stable?

BigMac68

The problem with that is that I have been working towards it for months and worried that I have not paid any creditors now for 4 months in the build up that I will start getting bailiffs at the door ... and it is making me anxious . What would happen if I take the redundancy and live on the money whilst I look for another job - call the creditors and tell them I have been made redundant and am looking for a job - and then say in 6 months apply for the bankruptcy ? 

sourcrates

All bailiff action is on hold till August.
After only 4 months you are no where near that kind of action, they have to go to court first and obtain a CCJ, courts are currently back logged, and will be indefinitely.
Debts just get passed between debt collectors anyway, you could not pay for 4 years and still not have legal action taken.
Don’t do anything in haste, debt collection is a very long drawn out process, even more so currently.
Good plan above, nothing will happen, what are you expecting ??

Write to your creditors explaining the situation, they can’t take what you don’t have.

hopper01609

I been paying one £2 per month for twenty years on £11k other took me for a ccj on 900 after about a year