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Please help. worked for company that has gone bust - in lots of debt, help.

(8 Posts)
Tortington Thu 26-May-11 16:52:52

FIL has worked for the same small bus company for over 24 years. the company has gone into liquidation.

this is what i know

there are no assetts - the building and equipmnet all leased.

He is now 65yrs old, and he and my mil cannot manage money, they are in a shit load of debt - SHIT LOAD.

What i want advice on is whether there is a government scheme where he can get money in situations where companies go bust.

the reason this is urgent is becuase the burden is going to fall on us and BIL and we just can't help him out of THAT deep a hole.

Any advice greatly recieved

sassyTHEFIRST Thu 26-May-11 16:55:22

Citizens Advice. They can help you - know entitlements etc.

Sorry about this custy.

Earlybird Thu 26-May-11 16:56:43

What does he own? What assets does he have? House? Pension? Other?

Tortington Thu 26-May-11 16:57:29

thanks

If anyone knows here that would be good - they live 300 miles away and - i just can't pop in cab with the little detail i have and i can't force them to do it - i am trying to pre-empt a potentially disasterous situation

Tortington Thu 26-May-11 16:59:44

he has a house - not worth much, debts worth as much as the house - the mortgage is pittance - they got a loan secured on the house and its fucking huge - plus lots of other debt.

he has super annuation pension

mil has state pension

no pension with the company

no protection insurances on anything - the loan, the house - anything

Earlybird Thu 26-May-11 21:31:21

Sounds a very difficult situation - made more difficult by a series of dire choices.

Any chance his company/colleagues will restablish under a different name and hire him? How difficult would it be for him to find similar employment with another company?

I'm sorry you're all faced with this. I'd be scared for them, and quite angry that they've got themselves into such a hopeless situation - and then look to you / BIL to 'fix' it.

There are no easy answers. I wish I had something useful or constructive to offer.

cremeeggsbenedict Fri 27-May-11 10:24:44

He is entitled to a redundancy payment from The Redundancy Payments Office, which is operated by the Insolvency Service. There is some advice on their website here which is quite helpful. The liquidator should send out a form to all the employees of the insolvent company so they can claim under the scheme. They don't get a huge amount but due to your FIL's age and length of service he should get a fairly decent payout.

If he hasn't had the form to fill out he needs to get on to the liquidator of the company to get one. Normally private companies managing the liquidation are better at getting these out in a timely fashion than the government.

This leaflet covers most of what he needs to know www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guideforemployees.pdf and the Redundancy Payments Office has a helpline that may be useful - 0845 145 0004.

Tortington Fri 27-May-11 13:38:48

thank you so much x

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