New York  |  Employment Law

Legal Question

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

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?

1 Answer


Answered on: 12/03/12, 6:48 pm by Nancy Delain

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.

THIS POST CONTAINS GENERAL INFORMATION AND IS INTENDED FOR ENTERTAINMENT PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE, NOR DOES IT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP. FOR LEGAL ADVICE ON YOUR PARTICULAR MATTER, CONSULT YOUR ATTORNEY.


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Delain Law Office, PLLC 107 N. College St. Schenectady, NY 12305

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