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Wilma Santos

My son is employed in the state of Arizona and has accrued $8,000 in medical claims for 2 of his children since October, 1999. The employer paid health insurance premiums through payroll deduction. It has now come to light that the monies were deducted from the employees paychecks, however, premiums were not paid to the insurance company. This money was apparently used by the company as a float. The company has now filed chapter 11 and my son was laid off as Operations Manager, today. What recourse does he have to get these bills paid?


Senior Member
My response:

Wages owed, even if they are deducted for some other purpose, are never dischargeable in bankruptcy. Your son also has a property interest in the insurance, and thereby, the coverage afforded. Your son has been defrauded; i.e., the taking of his wages and failing to pay the insurance premiums sounds like a purposeful act, subjecting the employer to punitive damages. I would take this matter up with an attorney A.S.A.P.


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