Legal Question in Bankruptcy in California

how much money can an employee recover from an employer in Chapter 11?

I work for a company that has not paid it's employees in 2 months.

I am concerned they will file for Chapter 11.

How much of our wages can we recover it they do file for Chapter 11? Is there a cap? Is there an amount of money they must pay? What are my rights as an employee?

thanks,


Asked on 5/03/01, 1:07 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: how much money can an employee recover from an employer in Chapter 11?

Employees have a priority for up to $4,300 for wages earned within 90 days prior to the bankruptcy case being filed. Depending on what their plan of reorganization provides, you should receive at least that amount. The remainder would get paid along with the general unsecured creditor class, pro rata.

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Answered on 6/18/01, 6:08 pm


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