Legal Question in Bankruptcy in Tennessee

Chapter 11 Bankruptcy

The company I worked for filed Chapter 11 Bankruptcy and laid me and others off. We did not receive our full pay or vacation pay. The manager said her bankruptcy lawyer said she did not have to meet all of her payroll. Is this true? If so, where does payroll fall in the rank of creditors? How do I file to get paid? She re-set up her business in MS.


Asked on 4/09/07, 11:08 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Chapter 11 Bankruptcy

You have a right to get paid. In bankruptcy court you should get classified as a priority creditor. This means that you should get paid ahead of any unsecured creditors. You also may have a claim for vacation time that perhaps has to get treated differently in the Chapter 11.

There also may be some issues with the individual resuming the business in Mississippi. If you are getting less than 100% of your money it would be best for you and your coworkers to get together and hire an attorney to look at your situation.

If you would like more information about what rights you may have, you can contact me at [email protected].

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Answered on 4/09/07, 2:37 pm


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