We estimate your redundancy payment to be:
We estimate your holiday pay could be:
We estimate your arrears of wages could be:
We estimate your notice pay to be:
Becoming redundant through insolvency may be temporary, but short-term debt can lead to longer-term financial problems.
Redundancy can mark the beginning of financial difficulty. If you have existing debt like a mortgage, loans, or credit cards, you may have to borrow more to stay on track.
It is important to prioritise your spending, manage expenses and look after your existing debts while you explore your options for new employment.
If you manage your expenses and debts well, as well as making a good financial forecast, you will be more likely to avoid long-term debt.
First it is important to prioritise any current debt that you have. It can be helpful to sort these into high priority debts and low priority debts.
High priority debts include:
These debts are the most important because if you fail to pay, there will be direct consequences. For example, if you are behind on your mortgage or rent, you could be evicted.
If you fail to pay other home debts like your gas and electricity bill, your services could be cut off.
If you do not pay debts like council tax, TV licence, taxes or magistrates court fines, then in certain circumstances bailiffs (court appointed officials) may attend to remove goods from your home.
If you are worried about your debts and your creditors (the people who you owe money), read this information from the Citizens Advice Bureau .
Low priority debts do not put your home, or home life, immediately at risk. If you fail to pay these kinds of debts, the consequences are usually less serious.
Paying low priority debt is still important, but you should focus on high priority debts first.
Low priority debts include:
If you have paid your high priority debt payments in a given month, start making minimum payments on your low priority debts, too.
Remember that low priority debts still represent money that you owe to other people. Your creditors (the people that you owe money) can sue you for any money that you owe them. This could result in a county court judgement against you. If a creditor gets a county court judgment against you, there may be payment terms that you will have to keep. Failure to pay can result in seizure of goods or, if your debt is over £5,000, bankruptcy.
If you are worried about your low priority debt and your creditors, read the Citizens Advice Bureau advice about How to deal with creditors of non-priority debts.
There are lots of organisations and websites that can provide you with support...
We've collected some of the best advice services together for you in our useful financial support guide.
With so much to consider during this difficult time, making a plan can really help...
Our useful guide will help you to understand your financial position, plan your next move and make progress.
There are lots of opportunities and options to consider after redundancy...
You may want to search for a job in your current field, or retrain in a new set of skills to start a different career.