Company I work for went out of business and owes for returned payroll checks and wages earned but not paid

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Company I work for went out of business and owes for returned payroll checks and wages earned but not paid

The company my husband and I work for went out of business closed their doors. The last payroll check they gave was for the work done from April 1-15, 2016 – those checks were returned NSF and Account closed. They still owe us for the time worked from April 1-30 and May 1-15. Their payment schedule would be time worked from the 1st of the month to the 15th of the month would be paid on the 12th of the following month. Then the pay from the 16th of the month until the end of the month would be paid on the 26th of the following month.

Now that they seem to not be able to be contacted is there anything that can be done, and if so what and how do I file for a claim if they filed bankruptcy. Their company is located in several states, but the account from where the checks were issued is in Arkansas, Little Rock.

Thank you for offering any advise.

Asked on May 21, 2016 under Employment Labor Law, Ohio


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

1) If the company was not an LLC or corporation, you can sue the owners personally and try to get paid from their peraonal assets or income. Unfortunately, if the company was an LLC or corporation, you only have recourse against the company, so if it is out.of business or has no money, you are very unlikely to be paid.
2) You should be sent a claim form as a creditor if they go bankrupt; if so, fill out and return. If not, then since bankruptcies are public, you should periodically search to see if they filed--try on the U.S. bankruptcy court website and also google searches. If you find that they did file, contact the bankruptcy court, in the district they filed in, and ask for instructions on how to file a claim.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption