Asked almost 2 years ago - Atlanta, GA
FlagI rec'd a judgement for unpaid wages from the court but about three weeks later i rec'd papers that the employer had filed bankruptcy. Can a civil action be discharged?
Yes, the employer's obligation can be discharged in bankruptcy.
The debt owed to you is a priority claim.
A great difference exists if the filing was Chapter 11 or Chapter 7.
Money owed for wages can be a priority claim, so either way, be sure to file your Proof of Claim on time so that if there is a distribution, or a payment to be made under a Chapter 11 plan for reorganization, that the obligation to you is paid before other, non-priority, creditors.
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