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