Small employer going into Cpt. 11, Will I get my unpaid wages?

[j1michal]

What is the name of your state? I live and work in Michigan

A little background:

I worked for a small painting company, owned by 1 man, for about 1 year. (about 5 employees) I stopped working for him about 2 months ago because he wasn't paying my wages. I now have $2300 in backed up wages. For the past 2 months I have been trying to get him to pay me, with no response from him. I recently filed a claim against him in small claims court.

This morning he called me to let me know he received the the paperwork that was served to him. He said that he was going into chapter 11 bankruptcy with about $150,000 owed to him. He said that that if I go through with the claim he will not be able to get me the money owed to me. He said he is trying to keep his employees off of the record so he will be able to pay us after this is over.

The way he paid us seemed a little shady:
We (the employees) were paid our wages without taxes taken out, but we were to file the proper tax information for the wages made during the past year. He also filed the proper paperwork on us for our wages over the past year. So even though we were kind of "paid under the table" we still paid taxes on our income.

I was wondering if what he is saying is true to the fact that he will not be able to get me the money he owes me unless I pull the claim in small claims court. He also said that he has been through this before. (I assume he meant bankruptcy)

What should I do to make sure I get my money?What is the name of your state?

 

[Dandy Don]

Don't get your hopes up too high that you will get this money. Bankrupt means he has other debts and creditors who will get paid before you do.

All you can do is visit or call the federal bankruptcy court to find out the name of the bankruptcy trustee and address so you can file a claim so that if he eventually does recover financially you will be in line to get paid a fraction of what you are owed.