Accepted Answer

Unfortunately for the employee, since the claim existed in the bankruptcy, the bankruptcy extinguished the claim and there are no assets left in the company to collect from. An action brought would be subject to a motion to dismiss and a motion for sanctions since it was discharged in bankruptcy. If bankruptcy had not occurred, then the new business owner would be on the hook for the action of the previous business owners. The employee could sue the President personally only if the President was directly involved in the discriminatory conduct, if not, I am afraid the bankruptcy is a bar to any action.

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Expert:	PaulMJD
Pos. Feedback:	99.5 %
Accepts:
Answered:	11/26/2008

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20+ Years of Employment Law Experience