Legal Question in Business Law in New York

Lawsuit during banruptcy

I am a business owner, a sole propritorship. In 2004, I filed Chapter l3. I have continued to run my business without any credit. I have two employees whom I sub-contract work out to. They paint my artwork from their own homes. Since our business is run without credit, I am finding that I am going to have to do the work on my own, due to lack of funding. I still owe my employee $3,000.00. Do they have any legal recourse, in regards to sueing ,me for back wages? Can I be sued during a bankruptcy? There have been no contracts or agreements signed between myself and my employee. thank you


Asked on 4/28/06, 1:33 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Lawsuit during banruptcy

If 100% of the wages you owe your employees are from the time before your bankruptcy petition was filed, and you listed the employees as creditors in the petition, and your creditors have approved your Plan, then no, your employees cannot sue you.

If any one or more of those conditions is not true, then your employees very likely can sue you, even without a written agreement.

Have you had a straight talk with them about your situation? Very often, that can forestall a lawsuit.

Feel free to contact me directly if you wish to enter an attorney/client relationship regarding your matter.

The information given here is general in nature and should not be construed as legal advice. For legal advice about your specific situation, consult your attorney.

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Answered on 4/28/06, 2:39 pm


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