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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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  #1  
Old 10-12-2000, 10:58 AM
southern shy guy
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Angry

Heilig-Meyers Furniture filed for chapter 11 Bankruptcy on August 16,2000. After filing they laid off over 4000 people and some of which were offered severance packages.
I was employed through August 23,2000 and have a signed contract for a severance payment, however they haven't paid and have included me as well as others in the bankruptcy.
Is this legal? even though they entered into a contract after they have filed? what can we do to recover our monies?
The home office is in Richmond, VA but I live in Indiana
  #2  
Old 10-12-2000, 12:40 PM
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Two options. Personally, I would consider both.

First, contact the bankruptcy trustee assigned to this petition. Let him know that you are a creditor of the petitioner.

Second, if the contract was entered post-bankruptcy, then you MIGHT be able to pursue litigation against them. The reason that it is MIGHT, is that you accepted the contract in full knowledge that they had filed Chapter 11. This prior knowledge could be used against you in that, even with that knowledge, you accepted an unsecured agreement. At the very least, I would send a certified letter to the registered agent (Statutory Agent) for the corporation and make a demand for payment. Give them a reasonable (10 working days) time to respond. If no response, at least you have documented your case for potential litigation.

------------------
Steve Halket
Judgment Recovery of Houston
JRS.Houston@excite.com
-----------------------
This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!
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