Legal Question in Bankruptcy in California

Are wages due dischargeable in Chapter 11?

My husband worked for a General Contractor until 12/8/98. This contractor filed chapter 11 Bankrupcy on 11/9/98 and did not list my husband as being owed any money. My husband had a hearing at the State Labor Commissioner's office last week, they verified that over $8000.00 in back wages, compensation, and reimburseable expenses are due, however, the eployer states that he filed BK 11 and is not liable? Is this possible? Please advise.


Asked on 1/12/99, 2:39 am

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

Re: Are wages due dischargeable in Chapter 11?

Of course the employer is liable if the money is actually owed. Your husband has a priority unsecured claim for a certain amount (I believe it's approximately $3,100--but I'd need to look it up). The balance would be a general unsecured claim. Now, whether or not the company ever has to pay is another story altogether and depends on whether their plan is ultimately confirmed, what assets they have, what senior creditors exist, etc. You should file a proof of claim with the bankruptcy court before the deadline to do so expires. If you need assistance, please give me a call at (818)509-1173. Sincerely, Mark

Mark Markus

Law Office of Mark J. Markus

11684 Ventura Blvd., Ste. 403


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Answered on 1/26/99, 3:01 pm


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