Can I get my pay if they file bankruptcy?
I worked for 4 months without getting paid then the doors are closed and bankruptcy is filed? I was on salary and had 10% ownership, which cost me and made me file personal bankruptcy when the company filed. What legal rights do I have? What are my options?
Posted January 29th, 2010 in Bankruptcy Q and A. Tagged: 4 months, doors, personal bankruptcy, salary.
nope because when they are bankrupt they cant pay you cause they dont have money…. but they can sell the business so they have to give you 10% of its shares.. see a lawyer
January 29th, 2010 at 3:27 pmI think you can .
January 29th, 2010 at 3:27 pmYou need a lawyer. As an owner, you aren’t getting any money. What was the set up for the business? You may have legal liabilities for the company’s debts! What was the arrangement with you filing personal bankruptcy when the business filed? Who’s the lawyer who handled that? Are you sure that nothing can come back at you?
January 29th, 2010 at 3:27 pmI cannot stress this enough – Talk to a bankruptcy lawyer.
Issues to bear in mind:
1. What type of company did you work for? Corporation? LLC? Partnership? I ask because some types of companies do not protect owners from personal liability. Essentially, if the company was sued and the company ran out of money, they could come after you personally. Liability is usually joint and several (as the owners owe the full amount together, but you each are responsible for the full amount).
2. What type of bankruptcy did the company file?
3. Why did you wait for 4 months without getting paid? Did you trade in your pay for the ownership stake? Unfortunately, there is not much you can do to get your pay if the company is being dissolved via bankruptcy. You might get a small portion of your pay at best.
January 29th, 2010 at 3:27 pm