Legal Question in Bankruptcy in Florida

If you are referring to the payment of severance under an employment agreement, a company may discharge the obligation, like its other business obligations, so long as there is no fraud involved. To prove a fraud, you would have to show that your termination from employment would not have occurred, had you refused the severance agreement.

If the employer did know about the bankruptcy, and your employment would have continued, then the severance agreement would be subject to rescission on grounds that you did not receive full disclosure. In which case, you could sue the debtor in bankruptcy court for a declaration that your debt is nondischargeable, but it may be costly and subject to an uncertain result.