My employer filed for bankruptcy. Will I continue to be paid?
UPDATED: February 20, 2013
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Wages earned before the filing get a lower priority, but are still paid before general unsecured claims. At least some of the wages (currently $10,950) you earned up to 180 days before the filing are given this priority. Wages in this context include wages, salaries, or commissions, including vacation, severance, and sick leave pay. But that assumes that there are assets available to pay your claim. In many cases, the employer may not have many assets left. If that's the case, you might get a few pennies for each dollar you are owed, or you might get nothing at all. The first thing to do is to file a proof of claim form, available from the clerk of the bankruptcy court as soon as possible. If you don't file a proof of claim on time, you might lose any right to collect for unpaid wages.