Legal Question in Business Law in Indiana

back wages due

Can a claim be filed against corporate owners for back wages due rather than the company since the company is filing for bankruptcy?

Asked on 4/20/09, 9:20 am

2 Answers from Attorneys

Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: back wages due

Thank you for your question. The answer depends on a number of factors including whether the company is a partnership, sole proprietorship, llc or corporation as well as the conduct of the owners.

You should contact a local attorney. You may also want to contact the Indiana Department of Labor or visit their website.

Good luck.

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Answered on 4/20/09, 10:52 am
C. David DuMond Law Offices of David DuMond

Re: back wages due

Promptly obtain a copy of the bankruptcy petition and review Schedule E, to see if your wage claim is listed as a priority claim. If it is, then the bankruptcy trustee will distribute assets to the Schedule E claims before anyone else (except himself, secured creditors and the government) is paid. But first the trustee has to determine if there are assets to distribute; if you are listed in the schedule, you will receive a notice about filing claims if the trustee thinks he can get any money for you. Also file a claim with the Indiana Department of Labor. Claims against corporate owners for corporate debts are difficult to prove. To get an idea of what is involved, do an internet search for the concept of "piercing the corporate veil." A fraud claim against the owners might succeed if you can prove they used your time knowing full well you wouldn't be paid. Good luck.

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Answered on 4/20/09, 11:05 am

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