What to do if an employer for files Chapter 7?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if an employer for files Chapter 7?
Does the company have to pay wages and vacation that is owed to me? And do I need to attend the meeting of creditors?
Asked on November 26, 2010 under Bankruptcy Law, North Carolina
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Unpaid wage and vacation pay, etc. rank as "preferred" claims in a bankruptcy proceeding (behind "secured" creditors but ahead of ordinary creditors). If you have not already done so file a wage claim then, although you don't have to, attend the meeting of creditors to make sure that your interests are fully protected. Employees who are owed wages share in the remaining assets of their bankrupt employer. In some cases, there will be sufficient assets to satisfy employee claims in full; in others, employees may be compensated for only a portion of their claims or receive nothing at all.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.