Legal Question in Bankruptcy in New York

Business Bankruptcy & Payroll

My employer recently went out of business, and will probably be filing for bankruptcy, if they haven't already. They still owe the payroll company for the passed 2 weeks, so they will not put out our last week of checks.

Does the company technically have to pay me, and my co-employees, for our last week of work if they file for bankruptcy? I dunno if it makes much of a difference, but I live in upstate New York.


Asked on 2/20/08, 11:58 am

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Business Bankruptcy & Payroll

In any business closing, including a closing through bankruptcy, there is a pecking order of who gets paid. Employees generally come first, vendors come second, partners/owners last.

Whether or not (and when) you actually get paid depends on how much money the Trustee overseeing the bankruptcy can squeeze out of the bankruptcy estate.

You might want to hire an attorney to represent your interests in your employer's bankruptcy. Hire someone who is local to you. If you need a referral, your county bar association may help or the New York State Bar Association (www.nysba.org) has a referral service.

Good luck.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 2/20/08, 1:43 pm


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