Hello Pat,

I'm sorry to hear about your redundancy.

This is a subject that has arisen a few times on the forum as it seems to often create confusion and worry.

Could you let our experts know whether your ex-employer simply paid you the minimum that they had to under law (a statutory payment) or also whether on top of that there was any extra amount as a result of a term in your contract, or your negotiation, or simply as a gesture of goodwill on their part?

If both are involved could you let us know how much each element was?

Hi

The redundancy agreement negotiated by the employee forum was for 2 weeks for each year not the minimum 1.5 which worked out at 26 weeks salary plus a completion bonus of ?ú3,150(taxed). The amount paid in redundancy was ?ú9,692.31 (untaxed).

Regards
Pat

The trustee is certainly able to request from you any amount over and above the basic statutory entitlement. The remainder of the lump sum is meant to be for your living expenses whilst you find a new job and would not normally have to be paid towards your creditors.

It sounds like you are being hit with a double-whammy here pat mac - they are looking for the majority of your lump sum plus ongoing payments. I would query this with your trustee again.

In terms of your wish to clear the ?ú3000 remaining, I take it you are referring to the sum of the outstanding payments you would have made had your circumstances not changed? Unfortunately I'm afraid it doesn't quite work like that. The trustee has to gather in what you can afford over the full three years, including the non-statutory part of your redundancy lump sum. Hopefully you will find work again soon, at which point your circumstances will be reviewed and a new contribution level set.

I wish you well with your job-hunt.

Thank you for that. Looks like I'll have to pay them the money after all.

The problem I have is that I don't have that amount of money to pay to them right now as I've used some of the redundancy money for other debts. The Trust deed is due to be completed May 2011, should I just offer to continue payments and top up the rest when I'm back at work or can they force the issue into bankrupcy?

Hi Pat,

It might be best to get on the phone to your Trustee very soon to discuss all of this in detail with them and work out a way forwards.

No-one will want to force bankruptcy if it is not necessary.

I would rather not go down the bankruptcy route, I'll give them a call to discuss.

Many thanks for all your useful advice and support.