I think that would only happen if what you plan to contribute from your redundancy would cover all of the original debt, interest, and your IP's fees. You can keep the statutory element of redundancy but anything over and above is a windfall and has to go towards your debts. Best call your IP and clarify what their position is on this.

I spoke to my ip briefly when redundancy was announced but they said they'd take 50% of the total?ápayment. Looking at the figures that means I'd be paying about 3K more than the debt was worth. Are they allowed to do that?

I think you should ask them to clarify exactly how they reached the figure of 50% and get them to break it down.

Mark

Hi sjuk1980.

In principle it is possible to pay more than your original debt total. We've seen this happen in practice as well.

The most that you'll have to pay, in total, is:

1 - The original debt total +
2 - Interest on these debts +
3 - The fees and costs associated with your trust deed.

I am sorry to hear of your upcoming redundancy, sjuk1980. Will you be receiving the statutory redundancy entitlement only or is there an extra sum on top due to the terms of your contract?

Hi kevin, my agreement is showing 2 ex gratia payments and one for compensation for loss of notice period.

Any statutory entitlement should be yours to keep, but the trustee is entitled to ask for payment of any element over and above that.