Severence package signed/bankruptcy possible

I was laid off and I signed my severence package agreement, but the company may be filing for bankruptcy. If I have signed a contract, will they still be obligated to the severence payments even though they are claiming bankruptcy?

1 answer  |  asked Jul 18, 2002 12:37 PM [EST]  |  applies to Minnesota

Answers (1)

Bill Egan
Bankruptcy

It depends on the kind of Bankruptcy and the amount of the compnay's debt. If they do file for Bankruptcy, you will be permitted to make a claim and the bankruptcy trustee will treat you like other creditors with unliquidtaed claims. Call a Bankrupcty specialist to determine if you have or can get priority over other creditors.

posted by Bill Egan  |  Jul 31, 2002 5:57 PM [EST]

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