Legal Question in Business Law in California
My husband was working for a subcontractor. Business was slow, so he found another job. Upon leaving, he asked for a chk that they owed him for purchasing materials. They said they would mail it. They never did. His final paycheck wouldnt be cashed by our bank because this company had bounced too many checks already. The owner of the company told us to cash it at a check cashing center. We did. 8 months later we got a threatening letter from the chkcashing center saying we had to repay the money, since the check bounced there too! Because we didnt want negative credit, we paid it back. We decided to send the past employer a letter of intent to sue in small claims for these reimb/chk return fees, etc. (about $3000.). One of the owners sent us a letter claiming they closed the business and filed chapter 7, so they dont need to pay us a cent! Is this true? Is there anything we can do. That was a payroll check (which he worked hard for) and material reimbursement money WE paid for one of THEIR comstruction jobs! Please help....
3 Answers from Attorneys
If you were not scheduled as a creditor and given notice of the bankruptcy filing you may be able to recover.
Payroll liabilities have a high priority in a business bankruptcy, and even in a Ch. 7 if there are any assets you may recover. You can look at the papers filed in the bankruptcy case on line at www.pacer.gov for a very modest fee. Then contact the attorney or the court for instructions on filing a claim. Move quickly, there are deadlines.
I agree with Mr. McCormick and Mr. Whipple. Have you considered speaking to a labor law attorney? Those kinds of cases tend to have what are known as waiting time penalties, and a successful attorney can sometimes recover attorney's fees litigating a case like that.
Related Questions & Answers
-
If I start a company called daisy consulting and use a trade name (DBA) "pink... Asked 6/28/11, 12:00 pm in United States California Business Law
-
I was discussing a business idea and forming a company with an acquaintance, we... Asked 6/28/11, 11:32 am in United States California Business Law
-
What is Venue and what is the effect of filing a case with improper venue? Asked 6/27/11, 4:10 pm in United States California Business Law
-
I bought a gas station soon my escrow close i went to city hall to get buissness... Asked 6/26/11, 10:39 pm in United States California Business Law