Welcome to the forum Tom12.

Your redundancy pay may be split into different categories:

1 - Statutory redundancy pay (the amount you are entitled to under the law). You'd normally be able to keep this.

2 - Any other redundancy pay (perhaps through contractual entitlement or negotiation). You'd normally have to pay this over to the trust deed.

In terms of the money paid to the trust deed, I wouldn't expect that it would count towards your equity liability. The two things are different.

I suppose you might be able to use the statutory element of a redundancy payment towards your share of the equity (or the same for your wife).

Thanks for the quick reply.I read on this forum that someone only paid 50% of the non statuary money to thier trustdeed as they had completed 3 years of payments.This is a bit of a sickener to be honest as to give them such a lump sum and still be in the trustdeed is very disheartening.

Hi Tom12.

There's nothing to stop you trying to negotiate if and when the time comes.

Hi Tom

If you have met the full contribution payments then you are not obliged to pay any of the redundancy. I don't think redundancy can be viewed as a windfall. You should certainly argue the point if they attempt to go down this route.

Your obligation is to deal with the equity and possibly the car and you should make proposals with the trustee for repayment.

Mark

That's interesting Mark.

Are there other types of payments that might be viewed in the same way after monthly contributions are finished but other liabilities remain due.

Once again thanks for your help its very much appreciated.

I'm not sure I would agree with Mark on this one. Certainly any statutory element should not be taken but if there is an extra contractual entitlement on top then it is possible that the trustee could seek payment of this to the trust deed.

Whether they have the right to seek these funds might depend on the wording of trust deed. It may stipulate 3 years as the cut-off point. or it may just state that you that your obligation to pay over such lump sums lasts until your discharge from the trust deed.

Either way, I certainly agree that it is worth making the argument to your trustee that it is unfair if they do look for some of your redundancy money from you.