Not getting paid because of Company filing Bankrupcy

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Latest post 05-03-2012 2:50 PM by Drew. 14 replies.
  • 05-02-2012 3:37 PM

    • Beate
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    • Joined on 08-17-2011
    • WA
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    Not getting paid because of Company filing Bankrupcy

    I need some advise about the Washington State Employment law. I was hired through a Recruiter on a three month contract with a Web Development Company. I received my first paycheck after 2 weeks but after that the owner of the Company had all kinds of excuses why he couldn't pay me. I received a phone call from him the Monday before my 3 month were up and he told me that he filed Bankrupcy on his company and that he has no money to pay me my outstanding $5000 of pay. I was wondering if anybody knows how I can get my money from him, or if the Recruiter is liable? Help!!!!

  • 05-02-2012 3:58 PM In reply to

    • Kivi
      Consumer
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    Re: Not getting paid because of Company filing Bankrupcy

    Check Pacer to determine whether he has really filed BK or not. Pacer is the Federal Court's system for listing cases.

    If he has, unpaid wages generally are a priority claim in BK as compared to the claims of other creditors (although you may not get everything that you are owed). You probably have to file somethng with the court.

    Most of the time, when people file for Bankruptcy, you do get a notice in the mail if you are one of the listed creditors.

    Of course, if he is flat broke, you may not get anything

    I doubt that you can hold the recruiter liable.

    If you can't verify that he filed, see if the State of Washington's Labor Dept can help you regarding your unpaid wages claim.

     

  • 05-02-2012 4:18 PM In reply to

    • Drew
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    Re: Not getting paid because of Company filing Bankrupcy

    Dust off the WA wage law and file an immediate wage claim  by steps outlined. .

    A wage claim is a priority to get paid.

    WA law imposes possible criminal penality  if employer failed to pay and had ability at the time to pay--like jail time .

    A bit of delay--so be it--but 3 months suggests serious foul play as to employees..

    Stop snoozing and start swinging hammers.



  • 05-02-2012 4:40 PM In reply to

    Re: Not getting paid because of Company filing Bankrupcy

    Beate:
    I received my first paycheck after 2 weeks but after that the owner of the Company had all kinds of excuses why he couldn't pay me.

    You mean you kept working after the 2d two weeks were up with no pay. Yikes.

    I'd have been out the door filing for unemployment and a wage claim in a heartbeat.

    Beate:
    I was wondering if anybody knows how I can get my money from him

    Monitor his bankruptcy file. Make sure you are listed as a creditor. File a claim with the bankruptcy court if you have to. File a claim with the state. And, for pete's sake, stop working for him and file for unemployment on the grounds of constructive termination. 

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-02-2012 5:21 PM In reply to

    • Beate
      Consumer
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    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    Yes, I did keep working for him after he didn't pay me and I know that was stupid. I can't file for unemployment since he only told me one week before my three month contract through the temp. agency was up.

    I will monitor his bankruptcy file, as soon as I find it and make sure I am listed as a creditor. Thank you for your help, I would've never thought of that since I never had to deal with this kind of situation.

  • 05-02-2012 5:22 PM In reply to

    • Beate
      Consumer
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    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    Thank you for your helpful advice. I'm on it :)

  • 05-02-2012 5:23 PM In reply to

    • Beate
      Consumer
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    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    Thank you for your help!!! I'm on it :)

  • 05-02-2012 5:35 PM In reply to

    • Beate
      Consumer
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    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    It states on Pacer that I have to be an attorney or work for the criminal justice system in order to create an account and check on his bankruptcy file. What do I do from here?

  • 05-02-2012 6:16 PM In reply to

    Re: Not getting paid because of Company filing Bankrupcy

    Beate:
    I can't file for unemployment since he only told me one week before my three month contract through the temp. agency was up.

    I don't think that's true.

    File anyway.

    Let the state tell you whether you are eligible for benefits.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-02-2012 6:19 PM In reply to

    Re: Not getting paid because of Company filing Bankrupcy

    Beate:

    It states on Pacer that I have to be an attorney or work for the criminal justice system in order to create an account and check on his bankruptcy file. What do I do from here?

    Look again.

    You can register as a private individual to do case searches.

    http://www.pacer.gov/reg_pacer.html

    https://www.pacer.gov/psco/cgi-bin/regform.pl

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-03-2012 11:22 AM In reply to

    • Beate
      Consumer
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    • Joined on 08-17-2011
    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    Thank you again!!!! It's great to get all this help from people I don't even know. My paperwork is filled out and will be mailed out today. Wish me luck getting my hard earned money back!!!!

  • 05-03-2012 11:36 AM In reply to

    • Drew
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    Re: Not getting paid because of Company filing Bankrupcy

    You probably need two separate claims to different state agencies

    1. For  UC

    2  Another for unpaid wages up thru  todays date.



  • 05-03-2012 12:59 PM In reply to

    • LG81
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    Re: Not getting paid because of Company filing Bankrupcy

    Beate:
    I can't file for unemployment since he only told me one week before my three month contract through the temp. agency was up.

    That, in itself,  wouldn't preclude you from filing for Unemployment Insurance Compensation (UIC).  You need to have made enough wages in your base year to qualify and would have had to leave through no fault of your own.  A contract ending is not a reason for disqualification.

    In your original post, you asked if the agency would be liable.  The answer to that is generally "no."  In a later post, you talk about a "temp agency."  Who was your employer?  The temp agency or the company for whom you performed the work?  On most "temp" assignments, the agency is the employer.  The agency bills its client for work performed (with fees added on top) on a periodic basis (depending on what is in the contract).  IF the agency was your employer, you can go after the agency.  It is not your fault that the firm did not get paid by its client -- IF you were an employee of the agency and not the client.

    On the other hand, you talk about the company telling you he did not have enough money to pay you, so it makes your situation a little confusing.  Please clarify who was your employer. 

  • 05-03-2012 1:35 PM In reply to

    • Beate
      Consumer
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    • Joined on 08-17-2011
    • WA
    • Posts 11

    Re: Not getting paid because of Company filing Bankrupcy

    I know it sounds really confusing so I will try to clear it up for you. The Recruiter that contacted me works for a temp agency but is also a friend of my employer. My contract was signed with my employer for a three month contract. As far as filing for Unemployment goes I just graduated from college and that was my first job, so I don't have enough wages in my base year to qualify for Unemployment. I just started a new job on Monday and this one is actually paying me. :) I just want my money back that my previous employer owes me. Hope this helps!!!

  • 05-03-2012 2:50 PM In reply to

    • Drew
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    • Joined on 03-30-2000
    • PA
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    Re: Not getting paid because of Company filing Bankrupcy

    Your only viable card seems to be a wage claim with your state DOL  for all wages up to the time you started elsewhere .

    If it was a valid contract and not a mere feel good letter you might have additional civil claims for the breech of contract especially if you took less to work elsewhere --but the WA DOL is unlikely to assist with those further claims--at least as I understand  DOL role.elsewhere. 



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