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Salary and Vacation Pay After Bankruptcy Texas

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  • Salary and Vacation Pay After Bankruptcy Texas

    I would like to understand what are the company obligations with respect to employee's salaries and already accrued vacation after it goes into Chapter 11

    Thanks,

  • #2
    First off, private employers in Tx. have no requirement to pay earned vacation at termination of employment. (unless it is co. policy to do so or required under a bona fide employment contract)

    For any salary or other money you believe you are owed, you most likely will have to put in a claim with the bankruptcy court as a creditor.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      Thanks for the answer. It is currently company policy to pay earned vacation when employees leave (for whatever reason). But I am not sure if they can change it when they go into Chapter 11. Also with respect to salaries not yet paid, are employees ahead of other creditors or behind them? I guess what I am asking what is the pecking order in the creditor list.

      Thanks...

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      • #4
        In a Chapter 11 bankruptcy, normally secured creditors get paid first - then unsecured creditors. Employees wages, vacation pay (or any other pay owed them) is usually 4th in line as a unsecured creditor. Whether you receive you money or how much will depend on the assets/debts of the co. & how many creditors there are.

        Good luck in getting money due you.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

        Comment

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