Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By imonlyasking
#315773 Hi
I have not been enjoying my job for some time as my manager and I donot get on - anyway I have been offered the option of entering into a Compromise Agreement for which I would receive around 6 months salary, but obviously I wouldn't havea job!

The issueis my wife and I were sequestrated earlier this year, what would happen to the money from the Compromise Agreement - would the trustee take it or would I be allowed to use it until I got another job?

Thanks.
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By TalbotWoods
#315813 Unfortunately yes, as this will be treated almost the same as redundancy pay.

HOWEVER

In this instance it has a knock on effect as to what benefits you may be entitled to and when you are going to be able to claim them. As DWP will see this as pay in lieu of notice, and not redundancy, so you may find you are excluded from any benefits until a set period of time has elapsed, whcih dependant on the level could be in several months. It is this that you can use to negotiate with your trustee.

I would suggest giving your trustee a call, or a hypothetical call directly to the AIB, and discussing options, before this takes place!

Tim