Does my husband have any rights if he sued his former employer for around $3,000 for unpaid services but his employer then filed for bankruptcy?

My husband worked for a landscaping company and the owner claimed he couldn’t pay him. Hence, that’s when the law suit came in. The Judge ruled in my husband’s favor and his previous employed was ordered to pay him $500 every month until the debt was fully paid off. Well, his former employer’s wife filed for bankruptcy shortly after and never paid what was owed. Can anything still be done or since he filed for bankruptcy> Was he cleared out of this debt as well?

Asked on June 25, 2014 under Bankruptcy Law, Nevada

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Unsecured judgments--such as the award or judgment the judge gave your husband--are among the debts that can be discharged in bankruptcy. So while your husband should be paid along with any other unsecured creditors (like a credit card issuer) on a pro rata basis, based on the bankruptcy plan, it is likely that if he receives anything, it will be pennies (dimes at best) on the dollar; and after that, the former employer will be clear of the debt. (And, if there is not enough to pay the unsecured creditors, your husband will get nothing.)


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