What to o if my business closed due to lack of money and I closed the bank account but still owe money to people?

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What to o if my business closed due to lack of money and I closed the bank account but still owe money to people?

I had no money to pay 2 employees for their last 2 weeks of working. Now the Department of Labor is asking for the records because the employees in question filed complaints. What happens I don’t have the money? I am just paying my bills as it is for my house and trying not to let it go into foreclosure. What can they do to me?

Asked on January 30, 2013 under Business Law, North Carolina

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Okay so we know that you need to pay the employees and do not ignore the Department of Labor here. But I understand that you are juggling things.  Is it possible to refinance or modify the mortgage in any way?  That would make more money available for paying the employees.  and then you should speak with some one about the debt and resolving that.  Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to cooperate with the department of labor in its investigation of you for the simple fact that your former employees under the laws of all states in this country are entitled to be paid for services rendered. In a nutshell, you need to get your former employees paid what they are owed as soon as possible.


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