Redundancy

[SLM]

I've just been informed that my job is at threat of redundancy in the first part of next year. I've been informed that I will receive a redundancy package. With this in mind can anyone help with the following questions :

1. Should I be declaring this to my IP?
2. How much of the redundancy payment could my creditors take?

Thanks for any responses.

Looking to a debt free future!

[MelanieGiles]

Yes - you should be putting your IP on notice that there may be a problem and taking his/her advice.

Redundancy is a compensatory payment for loss of office, so this needs to replace your salary for as long as the lump sum lasts - in which case you will be able to continue to fund your IVA payments in the short-term whilst you look for other work.

Creditors will only take your redundancy money if you walk into a job fairly quickly, and do not therefore need to rely upon the compensation. Also, the balance of any redundancy monies you have remaining once you find another job will also be caught under the windfall provisions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp