Hi again johnd.

If you are made redundant you will need to let your trust deed provider know about any payment received.

You should be allowed to keep the "statutory" element. This is the amount that your employer has to pay you under the law if they make you redundant. You should therefore have some time to be able to find a new position.

Any additional element of a redundancy payment (perhaps because of terms in your contract, or through negotiation) would generally have to be paid into the trust deed for the benefit of your creditors.

Hi Johnd

If you are made redundant you should tell your Trustee and forward a copy of the paperwork to him/her. Your Trustee can't touch the statutory element of your redundancy, however they are within their rights to ask for a contribution from the non statutory element of your redundancy payment.

Julie

I wondered about this, I entered into a PTD in May last year, there's now a possibility I might be made redundant and it will be a fairly substantial sum, nearly 20K - would all monies apart from the statutory element have to be paid to my Trust Deed.

To correct my comments earlier, what I should of said is that the Trustee is entitled to a contribution from the statutory element, dependant on the individuals circumstances. The Trustee is entitled to ingather the full amount of the non statutory element, however this may be open to negotiation.

Julie

I am really looking for advice as I have had conflicting information from my trustee. I have been offered voluntary redundancy....I have 5 months left of a 3 year trust deed and was going to continue paying the full contributions after I took redundancy. Have been told 2 different things by trustee....firstly as long as payments made to end there would be no claim on redundancy money. Was then told that more or less all of redundancy (plus my monthly payments I have left) would be given to creditors. Which is correct? Redundancy going to be circa 12k. Was also advised that I never actually had to tell trustee that I was considering this option as how would they know if payments were still being made!! Please help.....confused.com!!

Claire

Welcome to the trust deed forum Clairel32.

The usual advice provided by the experts here has been:

1 - A statutory redundancy payment (the amount that your employer has to pay you by law) might be yours to keep.

2 - Any additional amount is likely to be required to be paid into a trust deed.

As you'll see from Julie's comments above the whole situation may not be entirely clearcut in every situation. Therefore (and especially because you have already received conflicting information) it's probably best to get confirmation in writing from your trust deed provider before you actually choose a course of action and proceed.