Legal Question in Bankruptcy in Colorado

Vacation Pay after Bankruptcy

I work for a company which recently filed for chapter 11 bankruptcy protection. As a result, hundreds of stores within this company will be closed leaving many workers out of a job. Before the bankruptcy filing, I had 5 weeks of vacation time accrued. If my store is one of the stores to close, leaving me out of a job, will I still receive the vacation pay when my store closes?


Asked on 1/24/03, 10:02 pm

1 Answer from Attorneys
Jay Maynard Attorney at Law

Re: Vacation Pay after Bankruptcy

That would be an impossible question for me to answer for you. I have not reviewed your company's Chapter 11 bankruptcy filing.

Although I wish to convey my deepest sympathies to your situation, I can tell you that a Chapter 11 filing is the same as a Chapter 13 for a consumer. The company still have an income coming in to pay their creditors. Also, a Chapter 11 normally only effects the current debts owed by the company. In many instances, pension plans, vacation and other employee benefits are not considered to be debts. Employees normally have a separate fund or another criteria for paying their employees.

About the only thing you can do is get a copy of your company's Chapter 11 petition (it is public information) and take it to an attorney to review with you for possible answers to your question.

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Answered on 1/26/03, 2:37 am


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