I have a restaurant that was abruptly just shut down by the landlord and I still owe money to the employees, what can they do to me if I don’t pay?

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I have a restaurant that was abruptly just shut down by the landlord and I still owe money to the employees, what can they do to me if I don’t pay?

I don’t have this money to pay them and I am also I’m filing for Chapter 7.

Asked on November 12, 2011 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) First, are you sure the landlord had the right to shut down your restaurant? If the landlord acted improperly (e.g. violated a lease or contract), you may have a lawsuit against the landlord; you may wish to discuss with an attorney, or at least post a question here with detail about what happened.

2) Your employees can sue you for the money you owe them. If the restaurant was an LLC or corporation, they'd sue the business entity; if it was a sole proprietorship, they'd sue you.

3) The debt for unpaid wages is an unsecured debt; it should be dischargeable in bankruptcy, either that of the corporation or LLC or your personal bankruptcy.


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