How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31016
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

Does a severance agreement qualify for a post petition debt

Resolved Question:

Does a severance agreement qualify for a post petition debt and will the agreement be honored should a company file for bankruptcy?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.

If the employer files chapter 11 or 13, you should still get your severance package without any trouble because each of these types of bankruptcies are reorganizations of debt, not liquidation.

 

However, if chapter 7 is filed, which is a complete liquidation, you may not get your full severance package, or even a package at all. You will have a priority claim for any unpaid wages, but future income, such as a severance package, would probably be lost.

Roger and 3 other Bankruptcy Law Specialists are ready to help you