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  1. #1

    Default Chapter 7 and Severance

    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?)

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

    Default Re: Chapter 7 and Severance

    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?

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