Employer Bankruptcy
If your business declares bankruptcy and you owe money to employees, they become creditors too. As a result, they may not get paid all the wages they are owed. Employees are not in the top priority class of creditors, and their wages, salaries, and/or commissions must have been earned within 180 days prior to the bankruptcy, to a maximum of $10,950 for each individual. So, while these payments are limited, they are still part of the bankruptcy payout. It is important that you are well informed of all your rights and protections while going through your bankruptcy. It is important to have an experienced employment & labor attorney representing you through the bankruptcy process.