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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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If I claim bankruptcy would that include money I owe to emoyees

Resolved Question:

If I claim bankruptcy would that include money I owe to emoyees trough the labor board?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
1) Are you asking about filing a personal or a business Bankruptcy?
2) Can it be determined that you owe the money because of "false pretenses, a false representation, or actual fraud"?
Customer: replied 6 years ago.
We owe back money for different reasons.
1. We paid less then gov. Contract requires.
2. We did not pay for lunch or breaks.
3. Some employees said they started half hour before they actually did.
We are a trucking co. For the Post office. The botXXXXX XXXXXne is that we use to pay employees by the trip until the labor board determined that we have to pay by the hour and what time they( the employees) write down on their time sheet. Plus we owe money for the past two years.
Expert:  cfortunato replied 6 years ago.
Are you asking about a personal or a business Bankruptcy filing?
If a business, would it be a Chapter 7 liquidation (business will close) or a Chapter 11 re-organization?
Customer: replied 6 years ago.
Maybe both personal and business.
Expert:  cfortunato replied 6 years ago.

Payroll obligations to employees can be discharged in a personal, but not a business, Bankruptcy, and as long as the obligation is not the result of fraud or misrepresentation. Bankruptcy Stat. 727(a) & 523(a)(2)(A). This is so, even though the obligation is based on a Labor Board determination.


I think this is what you wanted to know. If not, please let me know.
Thank you!

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