Middle Vendor bankrupt-Am I screwed for 2 months pay?

[banta4gc]

Hey Folks,

I guess this is a wrong forum to post....but I was wondering if anybody had this info
- One of my middle vendors, an American firm, (for a contract project on 1099 - Independent) just filed bankruptcy and my salary (invoice payments) are outstanding for 2 months. Am I scrwered for 2 months pay then?

Q1) How does one cofirm the date when the company filed bankruptcy? (Does PACER website help - would they have the court documents?)

Q2) How does one recoup the money from a bankrupt firm? Or should I just forget the money! Did anybody have any luck on such a front?

 

[Jackolantern]

The company's assets will be liquidated to some extent, and the proceeds from selling those assets will be used to pay the company's debts to the extent that it is possible. Seek a consultation from a lawyer to figure out how to stake your claim on the money that will be paid out. If you are a W-2 employee of the company that went bankrupt, I believe your claim will have a higher priority than other types of creditors. But if you are 1099 it will be more difficult to collect.

 

[DSLstart]

You got nothing to worry about. You salary is paid by your employer and not vendor. No matter what happens to vendor or even client, you are entitled to receive your salary from your employer.

Hey Folks,

I guess this is a wrong forum to post....but I was wondering if anybody had this info
- One of my middle vendors, an American firm, (for a contract project) just filed bankruptcy and my salary (invoice payments) are outstanding for 2 months. Am I scrwered for 2 months pay then?

Q1) How does one cofirm the date when the company filed bankruptcy? (Does PACER website help - would they have the court documents?)

Q2) How does one recoup the money from a bankrupt firm? Or should I just forget the money! Did anybody have any luck on such a front?

 

[Jackolantern]

You got nothing to worry about. You salary is paid by your employer and not vendor. No matter what happens to vendor or even client, you are entitled to receive your salary from your employer.

I was under the impression that the "middle vendor" in this case is the employer. In other words, the poster is an employee of A, and A makes the contract with client C, so A is a "middleman" between the worker and client.

Maybe the OP will clarify.

 

[knowDOL]

If you are working for a desi company on percentage basis which in turns has an aggreement with bankrupt vendor, you may not get your full amount of salary, but he should atleast pay basic pay according to your Labor certification. If you want to be in good terms with your employer because of your GC, you can expect to lose your money until the middle vendor pays your company. But they do pay over one or two years so get an attorney help regarding this.

Hey Folks,

I guess this is a wrong forum to post....but I was wondering if anybody had this info
- One of my middle vendors, an American firm, (for a contract project) just filed bankruptcy and my salary (invoice payments) are outstanding for 2 months. Am I scrwered for 2 months pay then?

Q1) How does one cofirm the date when the company filed bankruptcy? (Does PACER website help - would they have the court documents?)

Q2) How does one recoup the money from a bankrupt firm? Or should I just forget the money! Did anybody have any luck on such a front?

 

[banta4gc]

Yep, I am on contract - 1099 (Independent Contractor)!

At this stage, I am not even able to confirm if the Middle Vendor (american firm) has gone bankrupt!
I know something has gone wrong - I am not getting my weekly paychecks and nobody is responding by email/phone from the firm. I wish there was a way to confirm from the State as to which companies filed for bankruptcy and as to what date they filed bankruptcy!

 

[banta4gc]

Looks like I may be screwed for 2 months pay!...

That's what I am hearing form colleagues....a Chapter 7 liquidation bankruptcy may protect the american firm....and I may be screwed!

 

[Jackolantern]

Looks like I may be screwed for 2 months pay!...

That's what I am hearing form colleagues....a Chapter 7 liquidation bankruptcy may protect the american firm....and I may be screwed!

Yep, as a 1099 contractor your standing to demand payment is not very strong.

 

[chitti007]

Sorry to hear about the potential 2 month loss of pay.
Try to talk to the end client and have them pay you directly for any services that have been rendered so far, but not billed yet.

Maybe something good will come out of this bad experience for you : Talk to the end client and try to work out a 1099 contract with them. With the middle man out of the picture, you could be making a bit more than what you currently make after he takes his cut.
Hopefully the contract will last long enough that the differential pay is much higher than the 2 month loss.