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Deferred Salary and Bankruptcy

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Junior Member
What is the name of your state? CA.

I work for a small business that is in a cashflow crunch and facing bankruptcy as a very real possibility. I have worked for the company for 3 years and during each year I have voluntiarely defferred pay to help us get through the lean months. During each of those years I was paid back in the calendar year (once pay roll began again) by having the amount I recieve each pay period doubled until all my deferred pay was recieved. From July of 04 to March 05 I deferred almost 42k of salary. When payroll began again in mid March 05', my pay was only for the current amount, meaning the back pay was not included. At that point I assumed that we still needed to keep the back pay in order to run the business. I was ok with that and assumed I would be paid back at the end of the summer as 85% of our business comes in the summer. So, this is where I stand now; 42k owed to me as back pay. What are my rights if we delclare bankruptcy? By the way we are a non-profit.


Dave Livingston

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