Hilo, HI asked in Bankruptcy and Employment Law for Hawaii

Q: I worked for hawaiian Springs. They owe me several paychecks. If they filed for bankruptcy am i able to get money?

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James L. Arrasmith
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Answered

A: To answer this question, let's break down the key points and provide some general information about employee rights in bankruptcy cases:

1. Unpaid wages: You mention that Hawaiian Springs owes you several paychecks.

2. Bankruptcy filing: The company has filed for bankruptcy.

3. Your question: You're asking if you can still get the money owed to you.

Generally speaking, employees have some protections in bankruptcy cases:

1. Priority claim: Unpaid wages are usually considered a priority claim in bankruptcy proceedings. This means they're typically paid before many other types of debts.

2. Wage limits: There's usually a limit to how much in unpaid wages can be claimed as a priority. As of 2024, this is typically up to $15,150 per employee for wages earned within 180 days before the bankruptcy filing or cessation of the debtor's business.

3. Filing a proof of claim: To receive payment, you'll likely need to file a proof of claim with the bankruptcy court.

4. Wage guarantee programs: Some states have programs to help employees recover unpaid wages when employers go bankrupt. You might want to check if Hawaii has such a program.

5. Time limits: There are often strict deadlines for filing claims in bankruptcy cases, so it's important to act promptly.

To get more specific advice for your situation, you should:

1. Confirm the type of bankruptcy filed (Chapter 7, 11, etc.), as this can affect the process.

2. Document all unpaid wages owed to you.

3. Consider consulting with a local employment lawyer or bankruptcy attorney who can guide you through the process.

4. Contact the Hawaii Department of Labor and Industrial Relations for information on state-specific protections and programs.

Remember, while employees often have priority in bankruptcy cases, the process can be complex and the outcome depends on various factors. Professional legal advice tailored to your specific situation would be most beneficial.

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