Welcome to the forum john66.

I'll apologise in advance because I'm afraid this will not be the answer you were hoping to hear.

You should expect to be able to keep the statutory element of your redundancy settlement. This is the minimum amount that your employer must pay you by law.

The intention is that you get to keep this part of the settlement so you can manage temporarily while looking for new work.

Any extra that you receive, because of beneficial contract clauses or via negotiation with your employer (as examples) would normally have to be paid into your trust deed to help repay your creditors.

WHAT IF HALF OF IT GOES STRAIGHT INTO MY PENSION FUND ALSO DOES HAT INCLUDE HOLIDAY PAY FOR TRUST DEED

Hi
Does you wife have PIP personal independence payment (mobility) or DLA disability living allowance mobility middle or higher. If not try applying. The mobility components can convert to a disability car to help your wife become mobile. Apologies if you are aware of this already.

Hi john66.

I'm not sure whether this is what you're meaning, but choosing to pay money that should have gone to your trustee into your pension could have really serious repurcussions for you.

Holiday pay is income. If you receive an income that's much higher than usual I'd expect that your trustee would look to gather in the additional sum.

Who was it told you that the trustee would allow you 2 months wages, John66? Unless it was your trustee then it doesn't really mean much.

The guidance that trustees have to follow is not very clear when it comes to redundancy monies and as such you will probably find that different trustees treat this situation in different ways - some probably more generous than others. As TDA says, it is normal to expect to be able to keep you statutory redundancy entitlement - which will be determined by your length of service, your wage and your age - and maybe holiday pay and pay in lieu of notice too (if applicable). Any enhanced redundancy sum will probably be required to be paid in to your Trust Deed I'm afraid, though it is definitely worth making the case to your trustee as to why you should be allowed to retain some of those funds given the situation with your car and wife.

it just frustrating i have 8 weeks holiday pay and 16 years long service at 1 half weeks
i also owe a family member a few thousand that i borrowed to get my current car fixed last year and would of liked to pay them the money am owe them and pay my housing rent arrears Is it possible pay off my rent arrears and my family member what i am due them

Hi john66,

These are questions to put to your trustee.

Unfortunately the only relevant answer here is the one that they give you. As Kevin explained in his post different trustees might go about this in slightly different ways.

You can certainly put your case to your trustee and they would hopefully be sympathetic. However, you should be prepared to answer the question as to how the rent arrears arose, as presumably an allowance was made in your budget to cover rent anyway?
Did you let your trustee know about the car repairs at the time and that you were going to have to borrow money from family to get it fixed? If so then I'd say you have a stronger case for being able to repay this debt now that you have funds available, especially if the car was needed for work purposes.

Hi. I'm in a similar situation like John66. I might be redundant and willing to get statutory redundancy payment which is 6 week and app. 3k. Can I keep that amount or need to be paid to my trust. I am not entitled for any extra pay off or bonus. But I have a 2nd job as well (part time, 12.5 hours per week). I have unemployment insurance which is "unearned income". I will not be entitled for any benefit from the government. Can my cost and expenditure recalculated and continue to pay my PTD or will be suspended until I find a new full time job. I have 7 more months to pay. Thank you.

Morning

Your Trustee will not have an interest in Statutory Redundancy Payments.

It is likely your Trustee will re-evaluate your contribution. If a reduced contribution is agreed then it is down to your Trustee whether to extend the duration of the deed to ensure all payments are made in accordance with the original proposal.

Paul