Legal Question in Employment Law in New York

My employer has not paid me in 4.5 weeks because of lack of funds. If my employer files for Bankruptcy what are the rights of the unpaid employees?

Asked on 11/28/12, 10:00 am

1 Answer from Attorneys

Nancy Delain Delain Law Office, PLLC

Unpaid employees of bankrupt employers are Schedule E creditors, meaning that they have higher priority than do the credit cards, but lower priority than do purchase-money creditors (such as mortgage holders).

If your employer goes belly-up, the employees might want to get together and chip in on hiring your own bankruptcy attorney to protect your rights. Talk to the attorney about whether s/he can represent the bunch of you or whether each person should hire an attorney.

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Answered on 12/03/12, 6:48 pm


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