Business Contract - Statute of Limitations?

[davidlee]

What is the name of your state (only U.S. law)? OH

Hopefully this will be clear enough. A bit of background.

I was the COO of a small company...part of my "severance" package was to simply walk away and be quiet, don't disrupt anything and I would get a large payment, spread out over 36 months. I had a simple legal agreement that stated this.

Well, needless to say, when I inquired after a few months, the Owner said...too bad...just try to collect and I will sue you for millions. He has no basis for his actions, but he has a high profile legal friend that loves going to court for him.

Anyways...it is a very simply contract...signed by all parties, etc. My option of course is to fight and take them to court, or wait.

However, in the mean time I have found out they are in a forebearance agreement with the bank, and within the next 6-12 months they will declare Chapter 11 or be Sold to someone else.

Finally to my question...does anyone know if my "exit" agreement will withstand a Chapter 11 filing? Am I better of filing now and getting a Claim before Chapter 11 or should I wait. If I wait, I am sure the contract will follow the new owners...but I am not sure of the best strategy?

Any advice would be appreciated. Thanks in advance!