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Topic starter
04/07/2013 11:55 am
Hi
I am in the unfortunate position that my job has been put at risk of redundancy with my 30 day consultation period due to end next week.
I understand from previous posts that I should be able to keep any statutory amount to tide me over until I find work but would need to pay into the TD any amount extra such as pay in lieu of notice.
My question is that if I have income protection insurance (which would kick in after 90 days) would the TD expect me to pay in the statutory amount also?
Thanks.
Domino
04/07/2013 12:26 pm
I can't help with the redundancy part of your Q.
I did ask my Trustee before I signed,about my income protection insurance if I were to loose my job for whatever reason. They said they wouldn't take it as it was a similar amount of my wage, which would replace it until such time that I hopefully gained employment.
Good luck for next week.
Completed 3yr TD Sept '12 discharged Sept '12. Trustee discharged Jan '13
Building up savings.
04/07/2013 2:43 pm
Hi Domino
Not necessarily. The Trustee will just assess your income as normal when the income protection kicks in.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
04/07/2013 2:44 pm
Hi Domino99.
I wouldn't anticipate that an income protection policy would change the status of a statutory redundancy payment.
As always with these things you'll want to seek clarification from your trust deed provider.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
04/07/2013 8:10 pm
Hi Domino. The income protection would not really have an effect on the payment. There is a procedure for dividing the redundancy/arrears/holiday with the Trustee. If you send what you reveive from your employer to yiur Trustee, they will advise you of what you have to pay over. The payment protection would likely mean that contributions would cease nearly all policies limit the benefit payable to some percentage of the policyholder's normal earnings. The limit is usually around 70% of gross earnings, but could be less for high earners.
Rob is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
31/07/2013 2:08 pm
Hi
Well today was my last working day in current job!
Thanks for all your comments so far.
The Trustee has requested all of the pay in lieu of notice amount & all the holiday pay to be paid into the TD. I get to keep just the statutory amount. I guess this is the norm?
Very pleased that my TD got protection beforehand.
Wish I had taken more holiday:-)
Domino
31/07/2013 2:13 pm
Hi Domino99.
We have typically heard that people keep just the statutory element to help them while they look for new work.
Have you got any plans in the pipeline in terms of new employment?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
31/07/2013 2:17 pm
Hi TDA
At least I will also have income protection that will kick in after a month so I will be able to keep up with payments to the TD:-
I have applied for several vacancies and registered with various employment agencies - onwards & upwards!
Thanks.
Domino
31/07/2013 3:02 pm
Sorry to hear that you did lose your job as you feared, Domino99 - but happy to hear that you are sounding optimistic for the future. Best of luck with the job-hunting.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
