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losyang168
Jan 26, 2008, 10:39 PM
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!

excon
Jan 27, 2008, 04:16 AM
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

Fr_Chuck
Jan 27, 2008, 07:24 AM
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.

JudyKayTee
Jan 27, 2008, 11:59 AM
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).