Please can an expert explain what the OR is allowed to do with redundancy payments.
I was told that the notice part of the redundancy payment could not be seized by the OR because that is income. I have read on this forum that the OR sees redundancy payment as an asset and is entitled to take the whole payment. Bascially leaving you with nothing to live on.
Please can someone state clearly what part of the redundany payment the OR is allowed to take and any law to back this up.
Can they take the notice portion of the redundancy payment?
How is taking your redundancy payment justified. The reason you get redundany payment is because you have no job. So you are being force to claim off the state then because your redundancy money has been taken away.
I'm afraid I can't offer you any clearer explanation than the info within the posts on sueann's thread.
You really are in the hands of the particular examiner of your case with certain aspects of it.
Any proportion of redundancy pay that can be classed as an asset is claimable. Any that is not is classed as income and can be claimed in that way. With no other income it is at the examiner's discretion whether or not the full extent of the rules are exercised.
Thanks John. Well that makes it more clear for me. This means its up the OR what portion of the redundancy payment he wants to take and nothing about any law or particular guideline that all ORs have to adhere to. Its a little like pot luck.
I had assumed that there was some regulation/law that stated the OR could not go after your notice pay. At least now all of us in this position know that its up to the OR in each case to make this decision.
Hi I have used my redundancy payment to live on and all i have left in my bank account is what is left of my notice pay. I presume that this will be left untouched then???
That is just the point the OR can take the notice pay. It's entirely up the OR and if you have already spent the rest of it on living expenses then he will probably take the notice pay to replace the part that was not notice pay.
I personally think there should be some clear guidelines on redundancy pay and what the OR is entitled to take. Your notice pay is income they give you that so you can live on it and look for another job, or how else would you survive. But from what I can understand from all my reading on this forum and elsewhere your redundancy money, all of it is considered an asset or windfall and as such its not yours to spend. The OR can take that momey to give to your creditors as compensation for their losses.
So make sure that you can account for every single penny you have spent so far. Because I have been asked to track mine they want to see where the money went. So start getting your bank statements out and track and account for every pound.
I think they are looking to see if you spent it on things like, cars, holidays things like that.
Its depressing I know but unfortuntely just the way it is.
hi all I have not gone bankrupt yet but will be very soon as soon as i get my default notice. My money most definately did not go on holidays or cars, it went on general purposes like shopping etc. Further more there is only about £300 left in my account which is general income money ie job seekers allowance, there is no notice pay left now due to bills taking it! So I guess they wont be taking whats not there!
Clarification on Redundancy Payments in BK
Posted - 22 April 2009 : 19:24:55
