Expert Advice When You Need It Most

How long does a trust have to pay employee claims after a chapter 11 bankruptcy?

First Magnus Finalcial seems to be playing games when it comes to paying former employees. Would we be able to file civil suits towards former executives for additional damages?

Save

Attorney answers (1)

Reputation Level 7
The amount of time set to pay various claims is usually set out in the Plan of Reorganization by Class of Debtor. You'd have to refer to the plan, if one has been filed, to see where you class falls. If the bankruptcy hasn't gotten that far, you should be getting notices of hearings and other things in the mail so show up at one of the hearings at the Federal Bankruptcy Complex downtown, or in whichever federal district they filed, and talk with one of the attorneys and/or the Judge. Anyone may go to those hearings.

As for a suit against the executives, that's a much tougher issue and you would really need to talk with an attorney about the viability, and validity, of your claim(s).

Hope this helps.

Tim

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 
Ask now