What to do if the company I worked for filed for bankruptcy with no warning to its employees and never paid us for the last 2 weeks that we worked or for our remaining vacation days?

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What to do if the company I worked for filed for bankruptcy with no warning to its employees and never paid us for the last 2 weeks that we worked or for our remaining vacation days?

I also had a 401K with this company that I need to recover. What options do I have to get the funds owed to me by this company? I believe that they filed for Chapter 11.

Asked on October 5, 2015 under Employment Labor Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You can file claims in bankruptcy court for the unpaid wages since Chapter 11 is debtor in possession or reorginazation-style bankruptcy, the company is intended to continue, and should have the funds to pay at least a portion of its debts, including debts to employees. Employee debts also generally get priority over must be paid before many other debts. The good news, then, is that it is likely that unpaid employees will be paid some or all of what they are owed. The bad news, you can only be paid through the bankruptcy process, which can take months and if the company does not have enough to pay all debts in full, you may not receive everything. You should contact the bankrutpcy court to confirm that they filed, and, if so, to put in a claim and also find your rights.
If they have not filed bankruptcy, you could sue them right now, including depending on the amount in small claims court, acting as your own attorney, for the unpaid wages.


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