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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am a salesman and my company owe me commission, this amount

Resolved Question:

I am a salesman and my company owe me commission, this amount has been accrued on our books. We are about to file chapter 11, am I protected to receive my commission?
I am in the state of Oregon
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Hello,


Thank you for your question.

company employees are receive preferential treatment in a chapter 11 bankruptcy. As an employee, you would typically be paid before the general unsecured creditors
Customer: replied 7 years ago.

Can a secured creditor ie the bank - call in the loan and shut the company down immediately or does Chapter 11 protect us from the secured creditors in the same way as the unsecured?

Expert:  Ellen replied 7 years ago.
a chapter 11 bankruptcy allows the company to continue to operate. One of the reasons a business may choose to go into a chapter 11 bankruptcy is to prevent a secured creditor from closing the business
Customer: replied 7 years ago.
So as we continue to trade under the protection of chapter 11 does a salesmans commission still get paid ? my commission is owed me from 2009 so can it be paid on the next payroll cycle or is it "frozen" for the duration of the chapter 11? Also if I earn commission while in C11 should that be paid when due under law or can the company withold it?
Expert:  Ellen replied 7 years ago.
as per J.A. policy, you must submit your new questions on a new thread after accepting
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