We have not been paid for 05/26 through 06/30 as the company filed for bankruptcy?

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We have not been paid for 05/26 through 06/30 as the company filed for bankruptcy?

Our company filed for bankruptcy. They asked that our side of the business continue to work so they could sell our portion. We stayed and we worked. They were able to sell our side and the purchasing company kept us on. We are all still owed for May 26th through June 30th. What can we do?

Asked on August 1, 2017 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You can present a legal claim against your employer--the one who had been the owner at the time you did the work--for the money. Howevever, if as indicated, they filed bankruptcy, you might have a great deal of difficulty in being paid: while wage claims have "priority" in bankruptcy cases (e.g. they get paid ahead of, say, claims by a plumber or electrician or contractor who did work, or claims by a someone who supplied inventory or software), they still will only be paid if there is money to pay them. If the company filed bankruptcy, cash is clearly an issue: there might not be money to pay the wages, or possibly only enough to pay them in part. Furthermore, you will have to wait through the bankruptcy process to be paid.
If they have indeed filed bankruptcy, you will present/file your claim with the bankruptcy court, using the docket or index number assigned to this bankruptcy, as a claim to be adjudicated in the bankruptcy. Contact the bankruptcy court for instructions.


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