Chapter 11 - Do you know anything about it?

[SnoopyCool]

DHs former employer filed Ch. 11 bankruptcy and DH is attending a hearing for the creditors this week. He filed a claim for $ against the employer (wages owed). Has anyone here any knowledge of how a hearing of this nature goes down? It should be interesting, I'm sure.

[snafu]

Chapter 11 is protection of assets from creditors with the hope that some form of negotiation can extend the life of the operation. It's breathing room only and gives DH time to make up lists of possible employers, prepare brief statements outlining is abilities/responsibilities, get his resume up-to-date, create lists of references, contacts that will disperse unless he acts quickly and research all the rules and requirements for obtaining unemployment insurance benefits.

This situation is so sad, I wish you great luck.

[SnoopyCool]

He's no longer employed with this company. He was laid-off in October. So we've run the gammet on doing the unemployed thing. I'm just wondering how they handle the hearing: what will they ask him, tell him, etc.

[arthurb999]

Payroll and payroll taxes cannot be bankrupted as far as i know.... he should get the money no problem.

[Saving in So Cal]

Employee wage claims have a relatively high priority in bankruptcy, but payment in full is not guaranteed.