If my wife works for a nursing agency that just filed for Chapter 11, what are the chances that she would not get paid for future work?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

If my wife works for a nursing agency that just filed for Chapter 11, what are the chances that she would not get paid for future work?

My wife works per diem, meaning that they call her when a shift is available at a local hospital and ask her if she wants to work it. She can take it or turn it down. If she turns it down they sometimes come back and offer time and a half or double time if the hospital is desperate. The hospital pays her employer after taking their commission pays her. Her employer just filed for Chapter 11. They called her for a shift tonight. What are the chances that if she worked tonight or any shift in the future, that she won’t get paid?

Asked on November 22, 2011 under Bankruptcy Law, New Mexico

Answers:

Robert Braverman / Law Office of Robert Braverman, LLC

Answered 10 years ago | Contributor

The Bankruptcy Code is set up to encourage people to deal with a company in bankruptcy. One way they do that is to consider the debtor's post bankruptcy obligations to be an administrative expense to be paid before any prebankruptcy unsecured or priority debt. If the business goes out of business after the bankruptcy is filed and your wife is owed money for that post bankruptcy period, your wife would be near the front of the line for repayment. However, if all assets are encumbered by liens, there is still a risk that she won't get paid. More information is available on www.bravermanlaw.com


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption