Legal Question in Bankruptcy in Tennessee

Re: retirement

A lot will depend on the nature of the bankruptcy (whether a liquidation or reorganization). Generally, once a bankruptcy petition is filed a bankruptcy estate is formed with a trustee in charge of gathering, organizing and distributing the assets of the debtor. The trustee would typically be the place to start. Depending on the type of bankruptcy, this individual may be either the reorganizing corporate entity (known as a debtor-in-possession) or it may be an independent third party.

In a situation like yours, there are typically many people facing a similar dilemna. Additionally, you, as well as these other employees will need to verify not only that the money currently exists, but that the proper contributions have been made to the retirement fund and that any withholdings you had were properly allocated.

Your question reveals a situation which has the potential to become very complex, very quickly. In addition to having to maneuver through a bankruptcy proceeding, you also have to have an understanding of ERISA. Because of this I would recommend that you contact an attorney to advise you and guide you through this process. If you would like to speak with me, please call Karen Nickelson at (901) 527-5522 to set up an appointment or e-mail me at [email protected].