QUESTION

How does one recover your wages if your company filed for bankruptcy?

Asked on May 25th, 2015 on Bankruptcy - California
More details to this question:
The company I work for is filing for bankruptcy, and they say they cannot pay our wages for the last month (our pay schedule is really delayed). I need those wages, especially if I am going to be out of a job. How do I get them?
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8 ANSWERS

Some of your wages may be a priority debt. Assuming there are assets in the business, all or party of your claim may be paid. Called the assigned Chapter 7 Trustee, and ask if the case is going to be an "asset case". You may have to file a "Proof Of Claim". Good luck!
Answered on May 28th, 2015 at 4:41 PM

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Your wages, up to about $10,000, are one of the priorities in repayment. However, the debtor business must have enough assets to permit the Trustee to turn them into cash and pay the higher priority claimants in full before we get to the (probably) fourth priority, which covers wage claims. If he company is filing under Ch. 7, it is highly unlikely that you will collect anything worth counting. In a Reorganisation under Chapter 11, your priority claim might be paid, but it could be many many months before you see any payment. You might try communicating with your creditors, explain that you cannot pay them just now, and that the reason is your employer's not paying you wages you have earned. They may well be willing to work something out. Or you could consider filing your own Chapter 7. Find s skilled bankruptcy lawyer in your vicinity and have a long talk with hi or her. Good Luck.
Answered on May 26th, 2015 at 3:53 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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You are probably eligible to file a claim in the employer's bankruptcy as a priority creditor, but unfortunately, not all companies have the resources to pay even the priority claims. For help, talk to the office of the state labor commissioner.
Answered on May 26th, 2015 at 12:12 PM

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Debtor Bankruptcy Attorney serving Middletown, NY
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File a Proof of Claim when prompted by the Bankruptcy Court to do so. Up to $12,475 in salary unpaid during the 180 period prior to the filing is entitled to priority status, with the balance being general unsecured debt. You should probably discuss this with local counsel.
Answered on May 26th, 2015 at 10:24 AM

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Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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You need to file a claim in the bankruptcy court. You should have received a notice from the court already.
Answered on May 26th, 2015 at 7:14 AM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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Wages have a limited priority in bankruptcy. Seek counsel NOW.
Answered on May 25th, 2015 at 8:07 PM

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You should resubmit your question, and identify it as a bankruptcy question. I only answer employment law questions.
Answered on May 25th, 2015 at 8:04 PM

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You don't. You could hire a lawyer and submit a claim but you're most likely going to get pennies on the dollar.
Answered on May 25th, 2015 at 6:05 PM

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