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How to Pay Employees While Filing Bankruptcy

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  • 01-17-2012, 06:05 AM
    upsetemployee
    How to Pay Employees While Filing Bankruptcy
    My question involves bankruptcy in the state of: Florida

    Hello I hope someone can help me, here is my problem: I am in the process of filing for chapter 7 the paperwork is being filled out but has not yet be submitted, my business has taken orders from customers and we are not going to be able to fulfill these orders, we did buy some parts to build what the customer ordered and there on the shelfs.

    My Question is we still owe employees money can we sell the supplies or tools or anything in the business and pay off the employees?

    we have not filed the paperwork but we also dont want the law to think we didnt have intentions of fulfilling the customers order as well, we do have the files of customers showing that we did buy parts for them.

    What can we do?
  • 01-17-2012, 10:44 AM
    Disagreeable
    Re: How to Pay Employees While Filing Bankruptcy
    I would complete what orders you can and ship them. Notify other customers you cannot complete their orders. Start cutting staff as possible, to lower liability. Is there a reason you cannot do this?
  • 01-17-2012, 08:50 PM
    Mr. Knowitall
    Re: How to Pay Employees While Filing Bankruptcy
    This is a corporate bankruptcy? Then you should have a bankruptcy lawyer advising you. (Or are you an unincorporated business, in which case you should still have a bankruptcy lawyer advising you given the potential complexity of having personal liability for payroll and business debts.)

    You appear to be stating that you received payment in full for customers for merchandise / parts, and now that you are in financial trouble want to both keep the customers' money and sell their paid-for merchandise to third parties so as to gain some cash flow. That sounds like a recipe for disaster to me.
  • 01-18-2012, 07:59 PM
    Who'sThatGuy
    Re: How to Pay Employees While Filing Bankruptcy
    It sounds like fraud to me, and fraud cannot be discharged in a bankruptcy.
  • 02-03-2012, 02:55 AM
    AkonMichal
    Re: How to Pay Employees While Filing Bankruptcy
    It's really a corporation and also company a bankruptcy proceeding reading? Next basically you have to have a significant a bankruptcy proceeding reading legitimate practitioner or healthcare provider supplying their particular assistance to at least one. (And also contemplating a robust unincorporated web business, you then should constantly employ a excellent a bankruptcy proceeding reading legitimate practitioner or healthcare provider supplying their particular assistance to at least one given in which chance sophiisticatedness of purchasing very own wrong doing made for payroll and also web business bank card bad debts.

    A single are usually exhibiting which you actually obtained payment inside the entirety made for folks made for products or services or perhaps sectors, and also the following you will end up about fund a difficult time want to everyone of people retain the users' money and also set on the block kinds very own paid-for products or services to assist you previous people in order to make several cash sum. That may might appear such as an crucial menu made for automobile accident for me personally.

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