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  1. #1
    Join Date
    Jan 2009
    Posts
    4

    Default Corporate Bankruptcy

    My question involves bankruptcy in the state of: Wisconsin
    In Oct. the company I was with went chapter 11.On Dec.15 several employees were payed severance/vacation pay. This was payed to employees who in some cases were only with company 6mos or who had left company shortly before closing. Conversely some were not payed anything lke myself with 10years in. Is there any recoarse to getting these monies as several people were payed nothing?

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Corporate Bankruptcy

    Were the employees who received severance/vacation pay paid as part of the bankruptcy proceeding? Had you put in a claim with the bankruptcy court for any unpaid income you were due?

    There is only so much money in the bankruptcy estate & sometimes all creditors cannot be paid.

  3. #3
    Join Date
    Jan 2009
    Posts
    4

    Default Re: Corporate Bankruptcy

    Betty:
    They are still paying out companies who filed claims.I have filed claims and inquires with the consulting firm on there website as we were directed to do.I have not been able to get to the bottom of the issue. My CFO only stated "You were on the list". I approached the bankrupcy court help line who referred me to the company lawyers who have yet to respond to phone or email inquires.Last week talked to Trustee of court who stated he would inquire if I got no responce. One theory I heard was they only payed where states had severance mandate. To me if Federal Bankrupcy Court directs company to pay severance/vacation to all that overrules states,but maybe this is the loophole.Also non of the employees owed personal expenses have been paid which I thought were one of the first issues payed

    Thank you

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Corporate Bankruptcy

    It seems you are on the list. I don't know what to tell you except the bankruptcy court will pay creditors in order of required preference. Hopefully, someone will respond to you. Good luck.

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Corporate Bankruptcy

    Is your complaint that you weren't paid earned wages, that you weren't paid out accrued vacation, or that other people got severance pay and you did not?

  6. #6
    Join Date
    Jan 2009
    Posts
    4

    Default Re: Corporate Bankruptcy

    The complaint is at least 5 of my fellow District Managers received severance/vacation and at least 3 of us didn't. Roughly $10,000 per manager in same position was payed out to those who were paid.

  7. #7
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Corporate Bankruptcy

    Then the "theory you heard" may well be correct. If you were paid all wages owed, and your state doesn't require an employer to pay out accrued vacation upon termination of employment or treat a contractual obligation to pay severance as wages, it's possible that those obligations are being treated as unsecured debts.

  8. #8
    Join Date
    Jan 2009
    Posts
    4

    Default Re: Corporate Bankruptcy

    Only comment is no one had any contract with company for severance etc.

    Thank you

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