Legal Question in Business Law in Indiana

can an individual sue a former employer for unemployment benefits

My former employer, currently under Ch.7 bankruptcy, DID NOT report any income for myself and fellow emplpoyees. When the business closed down, I had tried to file for unemployment benefits, and to this day, still have yet to receive anything! The business closed down on 12-09-2005, and today is 2-09-2006. Because the CFO of the company did not report any income, nor did he pay the IRS taxes, I can't get anything yet. Can I sue him (as the company) to get those benefits, and would I have legal protection in doing so?


Asked on 2/09/06, 5:05 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: can an individual sue a former employer for unemployment benefits

You can't bring a civil lawsuit against someone in bankruptcy. Speak with a bankruptcy attorney about the filing of a claim or an adversarial action in bankruptcy in order to get what's due you.

And report to the IRS that the tax trust funds haven't been paid in for you or other employees. That tends to get their attention.

Read more
Answered on 2/09/06, 6:19 pm
James Grissom Law Office of James P. Grissom

Re: can an individual sue a former employer for unemployment benefits

Mr. Bradie's ideas are good (as always), but if the company is in bankruptcy, it's because they have no money to pay their bills. While it's true that the bankruptcy judge could order them to come up with some money, that is not likely to happen unless someone shows that the company diverted funds illegally from the payroll. Have you tried pursuing a claim against the State of Texas Workforce Commission? I think they maintain a fund just for these types of cases.

Read more
Answered on 2/09/06, 6:50 pm


Related Questions & Answers

More Business Law questions and answers in Indiana