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Pre Chapter 11 filing. No staff have been paid in 2 1/2 weeks. Can we expect to be paid?

Our company (LLC) is most likely going to file Chapter 11 next week. We were just told last Friday that we were not going to be paid on Monday (we are paid on the 16th and 1st) because they have no money but that as soon as a client pays a past debt we will get paid our salaries from the 16th to the 31st. We were also told that any time we work past October 31st was to be considered as voluntary (free). Can we actually expect to get paid and are they behaving properly?

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Attorney answers (1)

Reputation Level 13
Well, you probably already know the answer in your specific case, but generally speaking, once a Chapter 11 is filed, pre-petition wages can't be paid until a plan is confirmed, unless the debtor gets a specific authorization to pay them. The good news is that these motions for leave to pay them are often filed and approved, and that even if not, most wages are entitled to priority treatment and have to be paid in full in order to confirm a plan.
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