Personal Bankruptcy Company owes back wages, filing for chapter 7, chances of recovery?

[adm369]

My former employer abruptly shut down operations the day before all employees were due to be paid. They then raised enough money to pay the wages a few days later, however several other employees filed a class action lawsuit and they company did not raise enough money to pay for the "damages" they are asking for. I would rather not join the lawsuit if I didnt have to but the offer has been extended to all laid-off employees. I am wondering what my next step is to recover my wages, Im assuming once they go to bankruptcy court I am just another creditor and I will be paid. Thanks!

 

[jharris352]

It depends on how insolvent the company is. If the company is very broke you could get nothing or you could get what you are owed but I doubt you will get "damages."

 

[Hideoutcabins]

My former employer abruptly shut down operations the day before all employees were due to be paid. They then raised enough money to pay the wages a few days later, however several other employees filed a class action lawsuit and they company did not raise enough money to pay for the "damages" they are asking for. I would rather not join the lawsuit if I didnt have to but the offer has been extended to all laid-off employees. I am wondering what my next step is to recover my wages, Im assuming once they go to bankruptcy court I am just another creditor and I will be paid. Thanks!

If they qualify chapter 7 as you suggest, I doubt you will get paid for anything.