Legal Question in Bankruptcy in New Jersey
Chapter 7 bankruptcy
Hi,
My employer just filed a Chapter 7 bankruptcy recently.
He still owe us paychecks and vacation, can he be discharged of those? How we employees can protect our rights ?
Please help me with information. Thanks a lot.
Gene Wang
1 Answer from Attorneys
Re: Chapter 7 bankruptcy
Where was the chapter 7 petition filed in NJ -- Newark, Trenton or Camden? Is your employer an individual (in which case he/she is eligible for a discharge under the bankruptcy code), or is your employer a corporation or other form of business entity, in which case it does not receive a discharge in chapter 7? You have a wage priority claim under the code for up to $4000 earned within 90 days of the filing date, and a general unsecured claim for any balance due you. You need to file an appropriate proof of claim with the clerk of the court where the petition was filed so you are on record. A trustee will be appointed to administer the case and liquidate assets for creditors. There may or may not be money available to pay some or all of your filed claim. Good luck!
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