Bankrupt and offered redundancy

[TheUmp]

Hi all

 

I was made BR in January this year;

 

My employer has just informed me that I am entitled to voluntary redundancy, which I am seriously considering due to personal reasons. (referred to in other threads)

 

I have been separated from my wife for two years and am wondering if, firstly the OR will claim any payment that I get and secondly, would my wife (and two dependent children) be entitled to half of this payment?

[abc123def]

Yes the OR would be entitled to the redundancy payment and the OR would have first call on the payment before your wife.

[sequenci]

Here you go, this is taking from the Insokvency Service technical manual:

 

An individuals entitlement to receive redundancy and associated compensation arises on the termination of their contract of employment by reason of redundancy. The redundancy payment represents compensation for loss of a job.

 

Where the employment has ended prior to the date of the bankruptcy order, but the bankrupt is awaiting receipt of the monies, then this is an asset which vests in the official receiver as trustee. If a bankrupt has received notice of redundancy, but not yet had employment terminated at the date of the bankruptcy order, then the right to receive a redundancy payment has not arisen. Any redundancy monies paid after the bankruptcy order has been made but before the date of discharge does not vest in the official receiver as trustee but may be claimed as after acquired property. The trustee must make a claim to after acquired property within 42 days of becoming aware of that property. The official receiver must satisfied that the amount claimed as after acquired property does not include any amount payable in respect of wages received whilst an individual works out a notice period, holiday pay or arrears of wages. Amounts received in respect of such payments should be included in any assessment for an income payments agreement/order.

[TheUmp]

Sequenci, I don't really follow that, it seems to say No, the OR cant touch it, but then says that they can 'claim' it.

Am I reading it right?

[assisted blonde]

It means that there is not an automatic right to it but there can be a claim on it once it is known about (thats how I read it) Any chance of the redundancy being put off until after next Jan?

[debtinfo]

What it means is that if your date of redundancy is before your discharge date then the OR has a right to claim the money, the rest of it is just about the technical process of doing the claiming

[TheUmp]

OK, thanks all, I think the process will be in about September!

Are there no legal channels that my ex could follow to claim some of the redundancy payment?

Edited June 9, 2012 by TheUmp

[sillygirl1]

If your redundancy includes annual leave payments those payments are YOURS and should not be assessed by the OR as part of the package, that is clear from the above passage.