Payment in Full/Settlement of Debt

[Alemaker566]

What is the name of your state (only U.S. law)? Minnesota

I just received a check from from an ex-employers receivership(?) that was owed to me for unpaid wages earned directly before they filed for bankruptcy. I'm owed roughly $2000 but the check is only for $200!

Accompanied with the check is a letter that states if I cash the check all debts are considered settled and paid in full. Now, about 2 months ago I rec'd a similar (letter only) stating that should I wish to settle for $200 I should sign the indicated spot on the letter and send it back to them within 30 days. I didn't. Those that did rec'd a check within a week for the agreed upon settlement. I believe the judge ruled the company had until the end of 2009 to repay creditors. The letter & check was dated 12-30-09.

The way I'm reading this is it's the company's attempt to pay out only what they have to. If they can get employees to settle for less, why not? Everything I've rec'd from them is along the lines of "settling", nothing along the lines of "in accordance with the bankruptcy ruling, etc"!

I'm looking for advice on how to proceed with recovering the full amount owed to me, or is this all I'm going to get? Do I mail the check back to the firm with a letter asking for full payment?

Thanks for any help you can give.

 

[Zigner]

What is the name of your state (only U.S. law)? Minnesota

I just received a check from from an ex-employers receivership(?) that was owed to me for unpaid wages earned directly before they filed for bankruptcy. I'm owed roughly $2000 but the check is only for $200!

Accompanied with the check is a letter that states if I cash the check all debts are considered settled and paid in full. Now, about 2 months ago I rec'd a similar (letter only) stating that should I wish to settle for $200 I should sign the indicated spot on the letter and send it back to them within 30 days. I didn't. Those that did rec'd a check within a week for the agreed upon settlement. I believe the judge ruled the company had until the end of 2009 to repay creditors. The letter & check was dated 12-30-09.

The way I'm reading this is it's the company's attempt to pay out only what they have to. If they can get employees to settle for less, why not? Everything I've rec'd from them is along the lines of "settling", nothing along the lines of "in accordance with the bankruptcy ruling, etc"!

I'm looking for advice on how to proceed with recovering the full amount owed to me, or is this all I'm going to get? Do I mail the check back to the firm with a letter asking for full payment?

Thanks for any help you can give.

Why do you think you could collect more from the bankrupt company?

 

[Alemaker566]

The bankrupt company was purchased in bankruptcy (2003) by another company who assumed their debt. The bankruptcy exit plan was something along the lines of this: The company had to pay between $200,000 and $400,00 per year to administrators first, then creditors (me), depending on how much the business made through 2009. I still work for the new company and know that business has been very good for the past 4+ years.

Based on the two letters that all owed employees have rec'd so far, the language tells that they are simply trying to settle debts for 10 cents on the dollar. "By cashing this check, you agree to accept payment in full" is what the letter said. If this was final payment, per the bankruptcy settlement, I would think the letters wouldn't give us an option. It would simply state "Here is final payment of all debts owed to you based on (whatever criteria) as set forth in the judges ruling". Or something similar.

 

[divona2000]

Double post
https://forum.freeadvice.com/business-bankruptcy-83/employee-owed-wages-2003-bankruptcy-499506.html

 

[Alemaker566]

Yes, I wasn't sure which topic this fit under.