What recourse do I have if my last paycheck bounced?

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What recourse do I have if my last paycheck bounced?

The company I worked for went out of business 10 days ago. I received by last pay check that day and deposited it in my bank on the same day. We had been told the bank would honor our checks but 5 days ago my back withdraw the amount of the deposit. The company did file Chapter 11 several days later.

Asked on March 25, 2013 under Bankruptcy Law, Virginia

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to contact the Chapter 11 trustee and explain what has happened and that you need to fill out a claim. You fill it out and submit to the court and file a motion (if need be after step 2 below) to request your check be taken out of the automatic stay and force the court to lift the stay and have the trustee pay you. You need to contact your state's department of labor to determine whether or not it has a fund to pay you this check (usually there is some sort of guarantee insurance fund).


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