Personal Bankruptcy Corporate Bankruptcy question

[AlRaz]

My company provides hourly workers to other company ("1st middlemen"). Then the company ("customer") who needs the workers hires "our" workers from "1st middlemen" and pays to the "1st middlemen" their hourly rate. This sounds like a convoluted setup, but it is common in the IT consulting area.

"1st middlemen" take their commission and pay remaining portion to us. We, in turn, have these workers as regular employees, so we pay the workers their salary, insurance, and other expenses.

The company (1st middlemen) filed for bankruptcy. After this, they received a regular payment from the "customer". Instead of sending the money minus their commission to us, they sent it to the bankruptcy court.

Were they correct? Should these payments be considered as their debt to us or (as I think) the "1st middlemen" were bailees (like someone who transfers a merchandise for others) for the payments due to us, and they had to forward the money to us?

We have already paid the workers their salary; the amount is not big enough (about $4000) to hire a lawyer.

Please advise.

Thank you.

Al

 

[Michael Wechsler]

Originally posted by AlRaz:
My company provides hourly workers to other company ("1st middlemen"). Then the company ("customer") who needs the workers hires "our" workers from "1st middlemen" and pays to the "1st middlemen" their hourly rate. This sounds like a convoluted setup, but it is common in the IT consulting area.

"1st middlemen" take their commission and pay remaining portion to us. We, in turn, have these workers as regular employees, so we pay the workers their salary, insurance, and other expenses.

The company (1st middlemen) filed for bankruptcy. After this, they received a regular payment from the "customer". Instead of sending the money minus their commission to us, they sent it to the bankruptcy court.

Were they correct? Should these payments be considered as their debt to us or (as I think) the "1st middlemen" were bailees (like someone who transfers a merchandise for others) for the payments due to us, and they had to forward the money to us?

We have already paid the workers their salary; the amount is not big enough (about $4000) to hire a lawyer.

I cannot advise you as an attorney (you can consult with one of our specialists at our typical discounted rates) but will tell you that in my understanding there is a period of time (I think 90 days) that within filing of the bankruptcy the debts cannot be paid to specific vendors. If so, then a company can pay off the debts to the company it favors (e.g. the President's brother's company is a creditor) and thereby leaving the other creditors high and dry. What are the specific facts within your case concerning the time period within which the bankruptcy was filed?