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My Former Employer Wants My Salary Back In Nyc

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  • My Former Employer Wants My Salary Back In Nyc

    My former employer filed for Chapter 11 in October 2003 and converted it into Chapter 7 on October 2004. I resigned 2 days after Chapter 11 was filed, in October 2003.
    I just received a letter from his lawyer stating the following:
    "It appears from the petition and schedules that within ninety (90) days prior to the filing of its bankruptcy petition, the debtor transferred to you on accont of an antecedent indebtedness the amount of $XXXX.00, as evidenced by copies of the enclosed check(s).
    At the time of said payment the debtor was insolvent. The payment you received was more than you would have received as a creditor in this chapter 7 case if the payment has not been made, and if you were to receive payment pusuant to the relevant provisions of the bankruptcy code. As a result, the Trustee believes that this payment was a preferential tranfer, voidable pursuan to Sections 547(b) and 550(a) of the Bankruptcy Code. Therefore, its payments now must be returned to the estate."

    Those checks were paying my salary. Can he really ask for my salary back?

    Please note that he was forced to file for bankrupcty due to FRAUD, not for lack of business...................

  • #2
    If it was paid under the bankruptcy order, very possibly. Unfortunately, with payments made under bankruptcy through the court, even employees don't often get payment in full. However, I would speak with an attorney about the situation. What do they say they will do if you refuse?
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