Hi again derek.

You are likely to be able to keep the statutory element of a redundancy settlement.

Anything extra is likely to have to be paid over to your trustee.

You really should have informed them of this settlement when you knew how much it would be in order that they could work out what needed to go where.

You should now contact your trustee ASAP to get this worked out. This is the only way you'll find out whether enough of the money remains to satisfy your responsibilities to the trust deed.

If there isn't enough money left I'm afraid your new car may be vulnerable and the trustee might consider pursuing your family for the funds you passed to them that should have been paid over to the trust deed.

You may wish to let your family know about this in case they find themselves in a difficult position when asked to repay any money (if that were to happen).

Hi does statutory element mean my severance pay not including any holiday pay and wages that are taxable

Hi derek.

From Gov.uk regards statutory redundancy pay:

"3. Redundancy pay

You'll normally be entitled to statutory redundancy pay if you're an employee and you've been working for your current employer for 2 years or more.

You'll get:
half a week's pay for each full year you were under 22
1 week's pay for each full year you were 22 or older, but under 41
1 and half week's pay for each full year you were 41 or older"

worked out my redundancy pay as £13000 if I owe £2700 still on equity is that all they would take off my redundancy pay?

Hi maverick267.

I guess it all depends a bit on the timing of various relevant events.

Best to seek confirmation from your trustee directly on this one I think.

Hi derek and maverick267,

In a Trust Deed it's the Trustees job to try and repay as much of the outstanding debt as possible. A Trust Deed proposal is generally the minimum that a client will repay if nothing changes in their financial circumstances during the period of the Trust Deed.

When a client inherits or acquires an asset often they will think that if for example they have £2,500 outstanding in terms of an asset value or the remainder of contributions then this is the amount that they need to pay over to clear off the Trust Deed. In actual fact, if they acquire for example £10,000 and their total debts are the start were £30,000 then there is a high possibility that it won't be the remaining payments or asset value but all of the £10,000 that can be asked for by the Trustee. That would mean that more money is repaid to the creditors and less is written off under the Trust Deed.

When it comes to redundancy you will be entitled to retain an element of this as it's only fair. If you have no job, you have no income and what do you then do to pay your bills until you find another job. If you receive an enhanced package that is more than the statutory element then the Trustee can consider this. Usually we will try to find a compromise that works for both you and the creditors in the Trust Deed.

If the sum of money acquired is sufficient to clear the debts in full then your Trustee also needs to pay interest on top of this and cover their costs. This can therefore push the amount of money you need to pay up.

Best thing to do is contact your Trustee and discuss this with them. Let us know how you get on.

I think there is a strong chance that they may insist on both the statutory redundancy pay of £13000 and the £2700 equity. The two are separate things and should really be treated as such.

Hi, sorry to jump on this thread but do Trustees take Statutory Redundancy pay ? I'm still waiting to hear back from my Trustee regarding my redundancy and I will only receive statutory redundancy pay which I thought would be a cushion for me over the next few months until I find another job ? Help, you have me panicking here !

Hi Stephanie.

You'll usually be able to keep the statutory element of a redundancy settlement.

I think there may be some confusion here relating to whether maverick267 has completed their monthly payments and is now just paying over the equity that is due, is still making monthly payments and has equity due as well, and whether the redundancy settlement would in fact be treated any differently by the trustee in either of these situations.

OK thanks.... sigh of relief.... I'll know more when my Trustee comes back to me, I e-mailed them again today so hopefully I'll hear soon. I'm absolutely worried sick. I was told I had no equity 18 months ago, I'm just hoping that is still the case, I really wish I hadn't been one of the cases transferred over 🙁

Sorry Stephanie, I think that was my fault! My last post shouldn't have read that the trustee in question may insist on the statutory redundancy pay - it was just the amount over and above the statutory pay that I was meaning.

That's ok Kevin... you panicked me there. I'll need the statutory to continue my payments if nothing else. I'm petrified the new trustee fails my trust deed and forces me to sell my house. Please tell me this isn't the norm ?

Definitely not the norm Stephanie. That's very much an absolute last resort where no other solution can be found.

As you can imagine, over debt solutions running for several years a significant enough percentage of clients will be made redundant. Trustees will want to work with their client to get things back on a level footing again. That's usually the best outcome for everyone involved.

Kevin!

What was the original agreement regarding your Trust Deed Stephanie and what makes you worried that your house will be sold?

I would hope that your Trustee will be flexible and understanding when it comes to your redundancy.

We normally allow someone a period of not making any payments when they are made redundant to try and find alternative employment. If someone returns to work and can afford to recommence with their contributions then things should continue as normal.