Do i list the LABOR COMMISSIONER (DLSE) & LABOR COMPLIANCE PROGRAM as creditors/prospects on my chapter 7 bankruptcy?

Asked over 1 year ago - Los Banos, CA

after employee complaints, the owner hired the Labor compliance program (LC) to do an audit. The LC claimed i owed wages. some employees were paid but soon i had all kinds of crazy allegations from more employees, & it became a nightmare with lawsuits following. i have filed bankruptcy & no longer in business. should i include the Labor Compliance & DIVISION OF LABOR STANDARD ENFORCEMENT (DLSE) creditors/prospects or just listing the ex-employees, & the lawsuits will suffice?

Attorney answers (3)

  1. Dorothy G Bunce


    Contributor Level 20
    Best Answer
    chosen by asker

    Answered . To comply with bankruptcy law requiring you to list every potential creditor & for your own protection, you want to cast a wide net & list absolutely every potential creditor. I have seen bankruptcy cases that listed tens of thousands of potential creditors. It is a lot of work, but well worth the extra effort & cost to prevent very expensive future legal problems. Hope this perspective helps!

  2. Neil Pedersen

    Contributor Level 20

    Answered . You need to have a bankruptcy attorney handle that for you. This is complicated. If you have a bankruptcy attorney, talk to him or her about it. If you do not have one, get one. This is too important for you to let mistakes you will introduce into the process to destroy your attempt to resolve all of these issues.

    This answer should not be construed to create any attorney-client relationship. Such a relationship can be formed... more
  3. Alan D. Walton


    Contributor Level 19

    Answered . I agree with Mr. Pederson. But the short answer is yes, you need to list every possible claimant. I have listed as many as 5 entities regarding a single debt.

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