Comments on: If a company files for bankruptcy does an employees salary come before other creditors? http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors Helpful Bankruptcy Resource Mon, 03 May 2010 16:37:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: stacy http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors/comment-page-1#comment-1928 stacy Fri, 03 Jul 2009 16:17:59 +0000 http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors#comment-1928 The Judge will make the determination<br><b>References : </b><br> The Judge will make the determination
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]]> By: Studly http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors/comment-page-1#comment-1927 Studly Fri, 03 Jul 2009 15:27:59 +0000 http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors#comment-1927 Your letter claims he was a "freelance" worker. That implies he was working as a contractor, not an employee in legal terms. Therefore, he falls in with the other creditors. Depending on the type of bankruptcy, he may get some money. First in line are "priority" debts like taxes and government loans. "Secured" loans are next, for mortgages or any loan that has a property lien attached. Whatever is left over gets divided between all of the other creditors. Remember this is a vague answer because all of the states have differant rules. Businesses will fall under differant rules. And the new bankruptcy law that took effect last year makes it worse to predict what will happen to your husband's money. Good luck.<br><b>References : </b><br> Your letter claims he was a "freelance" worker. That implies he was working as a contractor, not an employee in legal terms.

Therefore, he falls in with the other creditors.

Depending on the type of bankruptcy, he may get some money. First in line are "priority" debts like taxes and government loans. "Secured" loans are next, for mortgages or any loan that has a property lien attached.

Whatever is left over gets divided between all of the other creditors.

Remember this is a vague answer because all of the states have differant rules. Businesses will fall under differant rules. And the new bankruptcy law that took effect last year makes it worse to predict what will happen to your husband’s money.

Good luck.
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]]> By: bare_maximum http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors/comment-page-1#comment-1926 bare_maximum Fri, 03 Jul 2009 14:39:59 +0000 http://www.smartbankruptcyguide.com/bankruptcy-protection/if-a-company-files-for-bankruptcy-does-an-employees-salary-come-before-other-creditors#comment-1926 NOrmally the employess do get paid, but in many cases not the full amount. They work out some ratio for payments to everyone. The secured creditors get their amt from the assets they have secured, unsecured crs come next and the shareholders are the last to get the amount if any is left. Normally some formula is worked out and some proportion is fixed for each set of persons to whom the company owes.<br><b>References : </b><br> NOrmally the employess do get paid, but in many cases not the full amount. They work out some ratio for payments to everyone. The secured creditors get their amt from the assets they have secured, unsecured crs come next and the shareholders are the last to get the amount if any is left.
Normally some formula is worked out and some proportion is fixed for each set of persons to whom the company owes.
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