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Chapter 7
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Chapter 7
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
We may be forced into Chapter 7 today, which leaves me with some questions:
1) Unpaid employee wages and expenses
2) Termination of benefits, 40(k) and other ERISA plans
3) Inability to pay someone
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Forums » Topic Forums » Legal Forum » Chapter 7
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Chapter 7
posted at 6/23/1999 12:18 AM EDT
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Posts: 1
First: 6/23/1999 Last: 6/23/1999 |
We may be forced into Chapter 7 today, which leaves me with some questions:
1) Unpaid employee wages and expenses 2) Termination of benefits, 40(k) and other ERISA plans 3) Inability to pay someone to clean up and unwind the above. Any HR guides for doing the above while in bankruptcy would be very helpful. |
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Chapter 7
posted at 6/23/1999 1:13 AM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
Sorry to hear about your predicament.
You may need some hands-on legal advice. Is there an attorney representing your Chapter 7 filing? The local state DOL has the information on unpaid wages, and the Federal office of the DOL can help with ERISA but you may not particularly want to involve them directly. Talk to a lawyer. If you don't have one, I'm sure EB&G can refer you to the local Bar Assoc. |
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Chapter 7
posted at 6/23/1999 5:41 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Having had a great deal of experience representing entities in bankruptcy or considering bankruptcy, we know that there are certain firm rules about distributions. For example, unpaid wages within a certain period of time are entitled to be paid out as a priority (i.e., in front of general debtors). The same holds true for the person or entity responsible for winding up the affairs of the estate (called the trustee, whose fees are paid for out of the assest of the estate as an administrative priority). You should consult with a bankruptcy attorney about these issues. Remember, companies can file for "reorganization," meaning that after the bankruptcy the company can emerge without debt and still in business. |
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