Legal Question in Bankruptcy in California

Employee salary payments in bankruptcy

I am an employee in a large Radiology practice in southern California that has stared having cash flow problems and my paydeck is 10 days overdue. The partners in the practice have decided to take a loan to pay the employee doctors (of which I am one) but I assume they are also discussing bankruptcy..would I have to be paid if they declared bankruptcy?

Thank you,


Asked on 1/30/06, 4:26 pm

1 Answer from Attorneys

KATHIE SIMMONS KATHIE SIMMONS

Re: Employee salary payments in bankruptcy

Employees have priory in bankruptcy over the unsecured creditors. That means you will get paid in full before they get anything. The question I would have is how long do they expect you to work without getting paid. I think you could claim unemployment in that you have effectively been laid off.

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Answered on 1/30/06, 6:48 pm


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