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Wages owed by bankrupt company

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BorderGuy

Junior Member
What is the name of your state? Texas
Couple of years ago I was hired by a company that didn't inform me they were in ch. 7 (now ch. 13) they owe me abt. 3k back wages not paid when going belly up ,much to my surprise. I went to Texas Workforce Commission (labor dept here in Tx.) and it was then I found out they were in ch. 7 as the commission informed me that they could not go after someone in bankruptcy proceedings.Have been referred to a Federal Bankruptcy Trustee who allowed my claim but lumped me in with all other creditors and tells me that I must wait until Jan. 08 at the earliest to see what my share of payout will be. First question: Aren't employees to be paid before dividing up of assets etc. to share amongst other creditors? Second question: Have been notified of law firm who did work for debtor's company making motion for immed. payment based on work done but now disassociated with debtor. Can I make a similiar motion? I have recently had a quadruple bypass and am permenently disabled and am indigent, so really need the 3k owed.Third question: Do I have some kind of case relating to the fact that I was not informed of bankruptcy that was in place when I was hired because it robbed me of seeking legal recovery of wages through the Texas Workforce and state wage protection afforded by them?
Thanking You in Advance for All Opinions and Comment
 
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Ladynred

Senior Member
First question: Aren't employees to be paid before dividing up of assets etc. to share amongst other creditors?
Actually no, they are not. Even in a bigger Ch 11, wages owed to employees is at least 3rd or 4th on the list of priorities for who gets paid.
Second question: Have been notified of law firm who did work for debtor's company making motion for immed. payment based on work done but now disassociated with debtor. Can I make a similiar motion?
You can try, but you'd better hire an experience lawyer first.

Third question: Do I have some kind of case relating to the fact that I was not informed of bankruptcy that was in place when I was hired,
I doubt it, but that would be yet another question for an attorney.
 

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