What happens with your unpaid wages if your boss files chapter 11?

Answer 1

You need to file a claim with the bankruptcy court. Not normally actually. Almost always, the first court orders (called first day orders), include authorization to pay any and all wages, in fact, as it is a C-11 and operations are and need to continue, all really required things (utilities, insurance, etc). Back wages are normally a major one, and -- (I've seen hundreds of them and it alwsys happens), all parties, even major creditors have really no interest in trying to screw employees out of anything, they get paid within days. The biggest delay normally has to due with the changing around of bank accounts. It is true that some limits may be imposed and very highly paid employees won't get it all, nor will you absolutely get accrued benefits, like vacation pay, etc. But, generally, normally, 99% of employees are essentially made whole and don't have to go thru any claim process. I suspect that your employer has distributed a letter to this effect by the time you get to read this.