Are wages dischargeable?

Wages have 4th priority under BC Section 507(a)(4) to the extent of $10,950 for each individual. For non governmental creditors, claims must be filed within 90 days after the first date set for the meeting of creditors. A creditor may seek leave for an extension of time to file a late proof of claim due to inadvertence, mistake, or carelessness amounting to “excusable neglect” as well as due to intervening circumstances beyond the parties’ control. You should have received a claim form with your notification of the bankruptcy. You should contact a bankruptcy lawyer immediately if you have not filed a claim. Disclaimer Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract. Good Luck starts with a strategy and a plan. Robert J. Suhajda, MS,CPA Attorney-At-Law 17721 Norwalk Blvd. #43 Artesia, CA 90701 562-924-8922 Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist. As a strategist, I analyze and integrate the operations, reserve study, budget, and financial statements into a unitary plan for 1 – 5 years, utilizing my experience as a former treasurer and vice president of a homeowners' association and corporate controller and auditor, to minimize homeowner association dues.

Yes, it's true. Wage claims are dischargeable just like any other unsecured debt. If you earned the wages within 180 days prior to the filing of the bankruptcy case, you have a priority for up to $11,725 owed to you. This means you will get paid that before regular unsecured creditors (like vendors or credit cards) get paid, assuming funds are available after the Trustee liquidates everything. To ensure you get paid if and when the funds are available, you need to file a proof of claim with the court prior to any deadline established by the court. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/

Small corporations rarely file bankruptcy. They usually die by just becoming inactive with no assets although sometimes they are formally dissolved. No matter how the corporation dies, if the corporation doesn't have any assets then obviously you can't successfully sue the corporation. Perhaps you can argue that when you agreed to go to work for this business your agreement was with the individual owner - not the corporation. Then maybe sue the individual owner in small claims. But if the individual owner is filing for bankruptcy then you probably won't get anything from him either. Good luck!