Back wages due and bankruptcy

Question Details:

I just spoke to the DOL and they told me that since my employer has filed Chapter 7 it's out of their jurisdiction and there is nothing more they can do to collect my back wages. There is a hearing on 11/19 should I attend and will I be allowed to speak? Seeing that I am currently unemployed, I cannot afford to hire an attorney, am I just wasting my time trying to get my back pay?

Asked 11/6/2009 under Employment and Labor | 185 View(s) | More Legal Topics

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Employment and Labor Law Answers

As long as the bankruptcy court has your wage claim officially on record, and you keep your contact information with the court up to date, you should get your money, eventually.

For people or businesses not in bankruptcy, who gets paid first often depends on who gets to the courthouse first, or the whims or needs of the debtor.  One of the things that a bankruptcy does, is set the priority of each debt to all the others, and then payment, to the extent possible, gets made through the trustee, in an impartial manner.  The rules of those priorities work in your favor, because the only debts ahead of employee wages, in the "line", are to the tax people.

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