Question by Rufina: If your boss who is an owner of a small business files for chapter 11 is he still legally obligated to pay wha?
If your boss who is an owner of a small business files for chapter 11 is he still legally obligated to pay what he owes you for your labor or can he get away with not paying his employees?
Best answer:
Answer by Melonie
Bankruptcy courts ALL recognize the priority duty in parcelling out the assets of a failed business is to pay creditors. Unpaid employees have a high-priority, statutory claim for wages. You probably get paid ahead of other creditors … but you may not get all that’s owed you.
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