How can I collect back-wages from a recently bankrupted company?My wife is contractually owed several weeks worth of back wages from a school that has recently declared bankruptcy. How can we go about collecting this debt? Must we file some manner of claim against the school to get a portion of it's liquidated assets? Attorney answers (4)Reputation Level 8
Answered almost 3 years ago.
Chapter 7 Bankruptcy Attorney in West Palm Beach, FL.
In order to collect unpaid wages from a debtor (employer) who has filed Chapter 11, or even Chapter 7 for that matter, you must file a written claim within the allowed time period. You should carefully review the Notice to Creditors that you, as a creditor should have received (generally about two weeks after the case has been filed). If you didn't get a notice then call the bankruptcy clerk's office, ask them to review the file and even if you were not listed as a creditor then you can still file a claim. You will be allowed a priority claim (which means that you are marched to the front of the line for payment) for the first $10,000 of your claim. That is, if the Debtor is able to reorganize or has assets available to pay creditors, always a dicey situation but then again, what do you have to lose; the form is free and there are no filing fees associated with this. So...have at it!
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Reputation Level 8
Answered almost 3 years ago.
Chapter 7 Bankruptcy Attorney in West Palm Beach, FL.
In order to collect unpaid wages from a debtor (employer) who has filed Chapter 11, or even Chapter 7 for that matter, you must file a written claim within the allowed time period. You should carefully review the Notice to Creditors that you, as a creditor should have received (generally about two weeks after the case has been filed). If you didn't get a notice then call the bankruptcy clerk's office, ask them to review the file and even if you were not listed as a creditor then you can still file a claim. You will be allowed a priority claim (which means that you are marched to the front of the line for payment) for the first $10,000 of your claim. That is, if the Debtor is able to reorganize or has assets available to pay creditors, always a dicey situation but then again, what do you have to lose; the form is free and there are no filing fees associated with this. So...have at it!
You should file a proof of claim with the bankruptcy court that has jurisidction over the case. Your claim may receive prioirty status, which means it will be paid before the general unsecured claims.
In Wisconsin, in addition to the information provided by Attorney Young, you should go to the Department of Workforce Development and file a wage claim- you can review the form and its instructions at www.dwd.state.wi.us, go to information for WORKERS, and go down to Labor standards and click). DWD
can use the wisconsin wage lien under Ch.109 to get a carve out from bank liens (which usually take all the money, leaving nothing for wages in a bankruptcy) for workers not paid just before the filing. |