How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

I reaches a settlement with my previous employer through the

This answer was rated:

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 ,


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


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.


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 4 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 4 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.
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you