If my wife works for a nursing agency that just filed for Chapter 11, what are the chances that she would not get paid for future work?
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If my wife works for a nursing agency that just filed for Chapter 11, what are the chances that she would not get paid for future work?
My wife works per diem, meaning that they call her when a shift is available at a local hospital and ask her if she wants to work it. She can take it or turn it down. If she turns it down they sometimes come back and offer time and a half or double time if the hospital is desperate. The hospital pays her employer after taking their commission pays her. Her employer just filed for Chapter 11. They called her for a shift tonight. What are the chances that if she worked tonight or any shift in the future, that she won’t get paid?
Asked on November 22, 2011 under Bankruptcy Law, New Mexico
Answers:
Robert Braverman / Law Office of Robert Braverman, LLC
Answered 12 years ago | Contributor
The Bankruptcy Code is set up to encourage people to deal with a company in bankruptcy. One way they do that is to consider the debtor's post bankruptcy obligations to be an administrative expense to be paid before any prebankruptcy unsecured or priority debt. If the business goes out of business after the bankruptcy is filed and your wife is owed money for that post bankruptcy period, your wife would be near the front of the line for repayment. However, if all assets are encumbered by liens, there is still a risk that she won't get paid. More information is available on www.bravermanlaw.com
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