My company recently filed for Chapter 11. Prior to filing, the company owed me expenses incurred in the course of business. If the company manages to reorganize successfully what happens to the debt incurred prior to filing for Chapter 11?
It depends on the terms of the reorganization. Your expenses may be treated as an unsecured creditor claim. Those may not receive 100% on the dollar. It is dependant on the plan of reorganization. In some circumstances, it may be treated as a priority claim and they will be paid before the unsecured creditors. You need to register the clain with the bankruptcy court to be sure you are included as a creditor.
