Our worldwide WORKERS workforce has significantly suffered from the economic and social effects of COVID-19. Millions fear losing their jobs and slipping into extreme poverty due to the unprecedented mass layoffs and furloughs. Therefore, employees and creditors have a right to be a little uneasy when a department store chain with thousands of Charlotte employees announces that it may file for bankruptcy.
Consult with employment discrimination attorneys Charlotte, NC, to ensure your rights are protected because the repercussions of improperly drafting and submitting a proof of claim can be severe.
A GUIDE TO PROTECTING YOUR RIGHTS DURING A BANKRUPTCY WORKERS
Step 1:Choose The Right Bankruptcy Type
CHAPTER 7 LIQUIDATION OR BANKRUPTCY
Any employee who receives notice of a corporation’s plan to file for bankruptcy should inquire as a threshold matter as to what sort of bankruptcy the company filed. Determining the choices that may be accessible to an employee who wants to defend their claims against their company depends on the answer to this question.
CHAPTER 11 REORGANIZATION OR BANKRUPTCY
In a Chapter 11 bankruptcy or “reorganisation,” the business continues to operate while attempting to restructure its obligations and come out of bankruptcy as a stable organisation. In this kind of bankruptcy, the company will typically keep many of its employees to continue operations and carefully examine spending to reorganise the business’s finances.
Step 2: Check if you received timely notice.
If an employer with 100 or more employees decides to close a plant or lay off many workers at a single location, WARN Act requires 60 calendar days’ notice in writing. Both Chapter 7 and Chapter 11 bankruptcies must comply with the WARN Act.
Step 3: Determine your wages and benefits WORKERS
All wages are hourly pay, salary, commissions, sick days, paid time off, and vacation money. While conventional wage claims are governed by the state and federal Departments of Labor, these laws do not cover claims for wages due to bankruptcy unless the employer willfully refused to pay wages owing and filed for bankruptcy to avoid paying salaries. As a result, claims for unpaid wages resulting from corporate bankruptcy are governed by the US bankruptcy code and come under the purview of the US bankruptcy court.
Step 4: File your proof of claim
If wages in bankruptcy cases go unpaid for a while, the employee should file for unemployment. Following that, employees must submit a “Proof of Claim” form for any unpaid earnings, salaries, commissions, vacation money, sick pay, or severance pay.