What are my rights on a pension I receive if the company has filed Chapter 11 bankruptcy?
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What are my rights on a pension I receive if the company has filed Chapter 11 bankruptcy?
They have sent me paper to fill out and return but I need help in doing so. Can you assist me?
Asked on August 7, 2012 under Bankruptcy Law, Mississippi
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You should place a claim with the bankruptcy court as a creditor/claimant for the amount you believe the company owes you in pension benefits. That is the first step; you don't want to extinguish those rights brought on by civil litigation. Next, in terms of filling out the claim form, it should be pretty easy. You put in all of the information (like case number and such and then put in the information you have for the amount of claim). Cateogorize it as a priority claim and see how the trustee handles it. Maintain communication with the trustee but also contact your state attorney general and see if there are funding sources regarding alternative methods to get some of your benefits.
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
A Chapter 11 bankruptcy filing is a reorganization as opposed to a complete liquidation. In a reorganization a pension plan is protected under federal bankruptcy laws from having its contents seized or taken away by creditors for the simple fact that the company's employees own the assets under the plan.
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