If you operate a business, will be filing bankruptcy, and prefer not to pay a prior employee, take action so that debt is not a priority debt. Imagine that in the near future you’re closing down a business and filing bankruptcy. You owe an employee or independent contractor back wages or commissions. But you’d rather not pay that debt … Read More
If you’d like to pay a prior employee or independent contractor recent wages or commissions, Chapter 13 can help you prioritize that. Our last three blog posts have been about debts you owe to your employees or independent contractors. Specifically, we discussed the conditions under which past wages, commissions, or benefits qualify as a“priority” debt. These posts covered: the … Read More
Debts for wages, commissions, and employee benefits may be priority debts, more likely paid. It depends on the timing and amount of the debt. Our last dozen blog posts have been about “priority” debts. These are special unsecured debts that bankruptcy law treats better than the rest, called “general unsecured” debts. (Secured debts are a third main category … Read More
If you owe an employee wages or benefits, it’s likely a priority debt. Same if you are owed wages or benefits. More likely to be paid.