Labor commissioner helped me to process the court papers against my ex-employer, then after 4 months I received the judgment from the court. Recently the debtor filed BK chapter 11, as I understand I need to file a claim, my question is do you think I have a chance to collect my money from the debtor since the debtor owed me 2 1/2 months salaries? And do you think the judge will be in my favor? Thanks!

Hello l:

It's not a matter of being in a judges favor, it's a matter of where the debts fall along a line of importance. Salaries are near the top.
excon

Corporate Bankruptcy (http://www.sec.gov/investor/pubs/bankrupt.htm)

Your debts fall under the unsecured debts, and they will come up with a plan to pay these debts off at less than full value, Your debt is not to the status of a secured debt.

You should receive some money but not full and it may take a long period as they make payments on this debt.

There will be a committee of non secured debtors formed to represent the non secured creditors.

Hello l:

It's not a matter of being in a judges favor, it's a matter of where the debts fall along a line of importance. Salaries are near the top.
excon


Right, I think the only thing paid off before salaries is taxes (in the unsecured debt category).