Legal Question in Bankruptcy in Florida

US Bankruptcy and Deferred Comp Plans

I retired from my company on Dec. 31, 2008. My Deferred Comp Plan says that my distributions were to be made the ''first day of the month following the end of the calendar quarter in which the Participants Termination Date occurs.'' My on-line account shows that the distribution was made on January 2nd; however on January 14th my company filed Chapter 11 Bankruptcy. For the past two weeks I've been told that it was at the companies discretion to send me a check. Today I was told that the company has decided not to send me a check and I must file a claim in bankruptcy court to recover my money. What date takes precedence in forcing payment, my distribution date or the bankruptcy protection filing date? Also, would I still be a unsecured creditor? The company is incorporated in Delaware, but I worked for a subsidiary that is headquartered in VA that is not a party to the bankruptcy. I worked out of my home office in Florida. Also, the company has provided no information on how to file a claim? What should I do, what are my rights?


Asked on 1/29/09, 6:28 pm

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

Re: US Bankruptcy and Deferred Comp Plans

I don't understand why the subsidiary isn't paying you, if that's who you worked for.

That aside, if the company is in bankruptcy, the dates become irrelevant; you must make a claim in bankruptcy to receive your money. If you were an employee of the company, you are a priority creditor. If you were a contractor, you are an unsecured creditor.

You should seek the help of a bankruptcy lawyer to help you file a claim.

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Answered on 1/30/09, 12:31 pm


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