bankruptcy question

[needlegaladvice]

What is the name of your state? CA

My wife worked for a company that claimed bankruptcy about a week 2 weeks ago. After the claim was made she received a letter in the mail that her company was going to investigate the previous 18 months of her employment with them. They are accusing her of working with a competitor in the industry while having a signed non-compete agreement with her employer. My question is, does the company she worked for have the right to sue her in court for collaborating with a competitor, even if she didn't? Is it true that once a company claims bankruptcy that they have no rights as a business? I want to know what her rights are as an employee? Any help is greatly appreciated. Thanks in advance!

needlegaladvice

 

[Ladynred]

, does the company she worked for have the right to sue her in court for collaborating with a competitor, even if she didn't?

If she signed a non-compete agreement they sure can ! Of course, they'd have to PROVE the allegation to win.

Is it true that once a company claims bankruptcy that they have no rights as a business?

I don't think so. Depending on what Chapter they filed, it would mean mostly that their financial affairs and assets are under the Trustee's control.

I want to know what her rights are as an employee?

If they owe her salary, she has a right to file a claim against the bankruptcy estate to get paid. A lot depends on what chapter of Bk they filed.