I'll be made redundant soon after going bankrupt. I will receive a redundancy payout plus payment for 4 weeks notice from my company. Given that I will be both bankrupt and unemployed, will the OR claim all of this redundancy money, or will I be able to keep some of it to live on?
I was also in your situation but the redundancy came first and then I went bankrupt. My understanding regarding redundancy payments (including notice pay)is that the redundancy payment is seen as an asset and the OR can claim the whole sum. I was advised by the OR office that since I had not gone BK yet I was to live off that money and pay my expenses and then go BK. Getting the money after BK means that the OR can make claim to it. But you can give them a list of your monthly outgoings because of course you need that money to live off and then take it from there. I think its up to the OR what they do. Redundancy payments are seen as an asset!
Unfair in my opinion you lose your job and the compensation you need to live off can be taken away from you. But that is how it is.
Redundancy payout after BR
Posted - 16 April 2009 : 23:34:58
