Legal Question in Bankruptcy in California

Employer Chapter 11--MY Wages

My employer filed Chapter 11. At this point he is behind on my wages 2 payperiods. What happens if he eventually folds---Will I ever see my wages? Do I need to file any legal action for them. I don't understand Chapter 11.


Asked on 1/30/98, 2:33 pm

1 Answer from Attorneys

Mark Markus Law Office of Mark J. Markus

Employer Chapter 11--My Wages

You have a priority unsecured claim for up to $4,000.00 of wages earned within 90 days before the filing of the BK. Any additional amounts will be a lower priority (general) unsecured claim. You should file a proof of claim with the court clerk listing those amounts with appropriate supporting documentation. If your employer is successful with the ch. 11, chances are pretty good that you'll get at least your priority amounts (up to $4,000.00). It all depends on how the Plan is structured. If the case gets converted to Ch. 7 you may or may not see part or all of your money depending on what assets, if any, the company has to liquidate.

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Answered on 1/30/98, 10:57 pm


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