Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
its against company and person the company has shut down now
we went to trial for back wages that were unpaid
A Chapter 7 can discharge the personal (not company) liability for the unpaid wages - as long as the non-payment was not based on fraud or false pretenses. If the unpaid wages were due to fraud or to false pretenses, the judgment would not be dischargeable.
In other words, if the person knew the wages were not going to be paid, but allowed the employee(s) to work anyway, then the unpaid wages would be non-dischargeable in a Bankruptcy. Otherwise, the judgment for the unpaid wages would be dischargeable.
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