Legal Question in Discrimination Law in California

Chapter 11

Can I file a discrimination lawsuit to

a company that laid me off when

they filed chapter 11?


Asked on 5/14/09, 6:04 pm

3 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Chapter 11

If you have a valid discrimination case, sure, you can file, but not after they go BK unless you file a BK Claim and seek 'relief from Stay' from the BK court to pursue your claim. Your claim may be discharged in BK, leaving you nothing to pursue. If it is not, you may have to litigate your case in the BK court, or they may allow you to proceed in state court. It's up to the BK judge. Plus, if they are BK, what makes you think you will ever collect anything even if you do win your claim after spending a ton of time and money doing so?

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Answered on 5/15/09, 1:49 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Chapter 11

You would probably have to bring the suit in the Federal Bankruptcy Court as an action within the bankruptcy case, and my guess is that your chances of getting reinstated or substantial monetary reflief would be slight, but you should probably re-ask your question on LawGuru under the bankruptcy law subject heading and gove us some detail as to what the discrimination consisted of.

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Answered on 5/14/09, 6:27 pm
David Gibbs The Gibbs Law Firm, APC

Re: Chapter 11

Upon the filing of the Chapter 11 petition, the Court issued an automatic stay which prevents you from taking any adverse action against the debtor (the company) without prior bankruptcy court approval. Your claim against them would have to be filed in the Bankruptcy Court, and frankly, you will end up with nothing better than an unsecured, non-priority claim which are the last to get paid if they reorganize or liquidate. I don't know any attorneys who work in Bankruptcy who would take this on a contingency fee - the way attorneys would outside of bankruptcy. The reason is recovery is far to speculative. Most attorneys familiar with litigating in Bankruptcy Court are going to tell you that they want a very sizeable retainer up front, and that your chances of recovery are probably slim. Rather than re-posting this on the Bankruptcy law section, contact a bankruptcy attorney - not the attorneys who represent debtors (that advertise Chapter 7 and 13 bankruptcy) but creditor attorneys. I don't want to discourage you from investigating this further, but don't get your hopes up that this will result in a windfall.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 5/14/09, 7:29 pm


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