Legal Question in Credit and Debt Law in Georgia

Re: Acquiring back pay from a company about to file bankruptcy.

Generally, wages are a priority claim in the event of a bankruptcy. This means they are paid ahead of many other creditors.

You may want to get written confirmation from your company that the stock options are not being given in lieu of wages, but only as compensation for the delay, so that there will be no question that the wages are still owed.

You might also consider asking the major stockholders to sign a document personally guaranteeing your wages. If they need your services badly enough, they might agree.

DISCLAIMER: It is not possible to give specific legal advice based on the limited information in your query. Information in our response should be considered general information only and NOT advice specific to your situation. Furthermore, no attorney � client relationship is intended to be created by this correspondence. You are not a client of Morgan & Morgan Attorneys at Law, P.C. unless and until we specifically agree to represent you and the appropriate fee contract has been signed.

You should not rely on this information alone in deciding your course of action. We recommend that you speak to an attorney of your choice and seek specific advice and representation.

Morgan & Morgan Attorneys at Law, P.C is licensed to practice law in the state of Georgia only. The general information contained in our response is based on Georgia law. If you or another party to your dispute resides in another state, the information provided may not be applicable.