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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17208
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I reaches a settlement with my previous employer through the

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I reaches a settlement with my previous employer through the labor board. They were to pay me a fixed amount over 6 months starting on June 7th. They made the first payment but I didn't receive the 2nd payment that was due by July 7th. I was told the settlement amount would more than double if they were late on any of the 6 payments. If the company filed bankruptcy would they not have to pay me?

I'm just speculating on the bankruptcy but I can't imagine why they wouldn't have paid me on time since they know the settlement will more than double if they don't.

Thanks ,
Dave

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

This is a common issue, under the bankruptcy law, even wages can be discharged in a bankruptcy, so the employee has to file a proof of claim to make a claim for the wages owed, and if the employer has any assets the court will pay your based on your claim, an employee who does not file a proof of claim form by the deadline established by the court loses the ability to seek compensation.

WALLSTREETESQ :

Wages can be discharged, so file a proof of claim, if you did not receive one, you can go online and print it out and send it.

Customer: replied 3 years ago.
Ok. How can I check to confirm that they did file bankruptcy?
If you did not receive anything in the mail, it would be difficult, you can go to the local Bankruptcy court in your area, and give the clerk the company name and they can look it up as well.

Under the law once a corporation files bankruptcy they have to send notice to all employees who they owe money to.
Customer: replied 3 years ago.
I'm not an employee any longer I quit 5 months ago. Do they still have to notify me and does my claim get paid out first or existing employee wages first. Thanks again
they will still have to pay you, and claim you as you are a debt, your wages would be lumped with all other wages owed, however the parties who file proof of claims only get paid.
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