Are bankruptcy employee settlement payments taxable?

My company filed Chapter 11, 18 months ago and I have just received a check (settlement)for vacation pay earned 90days prior to filing the bankruptcy petition. Nothing was withheld. Will I be required to pay taxes on the amount? Or are there other circumstances during bankruptcy?

1 answer  |  asked May 30, 2003 3:35 PM [EST]  |  applies to Texas

Answers (1)

Trey Henderson

You need to consult a CPA about the taxation. Most of us employment lawyers are not familiar with the tax laws. However, I would expect the amount you received would be taxable since it is for wages.

posted by Trey Henderson  |  May 30, 2003 9:05 PM [EST]

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