My question involves bankruptcy in the state of: FL
If a company files chapter 7 and liquidates, where does employee severance pay fall in the hierarchy of those owed money? (If and when should an employee expect to be paid?)
My question involves bankruptcy in the state of: FL
If a company files chapter 7 and liquidates, where does employee severance pay fall in the hierarchy of those owed money? (If and when should an employee expect to be paid?)
Whether you get paid & how much (if you do) depends on the assets of the co. & the # of other creditors.
Generally secured creditors are first, then money owed employees before other unsecured creditors.
It can take the trustee 60 days or more to sell the assets & for employees to collect any money.
Did you put in a claim, as a creditor, with the trustee of the bankruptcy court?