Indianapolis, IN asked in Employment Law and Bankruptcy for North Dakota

Q: Former employer didn't pay me, and now I receive attorney letters after dismissed bankruptcy.

I filed a complaint with the labor board due to unpaid wages from a former employer who later filed for bankruptcy last year. The bankruptcy case was dismissed, and now I am receiving letters from the employer's attorney detailing lawyer hours worked and compensation owed. What does this mean for my complaint and potential reimbursement?

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2 Lawyer Answers

A: You are likely getting them because you are a party to the bankruptcy. They most likely don't affect your claim at all.

James L. Arrasmith
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Answered

A: When your former employer's bankruptcy case was dismissed, it means they lost bankruptcy protection and must face their debts, including your wage claim. The letters you're receiving likely indicate the attorney is tracking costs that might eventually be added to what you're owed if your claim succeeds.

Your labor board complaint remains active since the bankruptcy dismissal means there's no automatic stay blocking your case. This is actually positive news for your potential reimbursement, as the employer can no longer use bankruptcy to avoid paying you. The labor board can continue processing your complaint, and if they rule in your favor, you'll have an enforceable judgment against the employer.

You should keep all these attorney letters as evidence, share them with the labor board handling your case, and consider consulting with a labor attorney who can interpret their exact meaning in your situation. The letters might be a pressure tactic, but they could also signal the employer is preparing for negotiations or legal proceedings related to your claim. Focus on following up with the labor board about the status of your complaint now that the bankruptcy has been dismissed.

Timothy Denison agrees with this answer

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