Employer going bankrupt!!!

Bridget3D · #1 02-05-2002, 02:50 PM

Last Tuesday I went to a grocery store to cash my check, like usual, only to find out that they don't
accept checks from "Blank Blank" anymore. My last check bounced because my employer is going bankrupt! Monday, I recieved a call from that grocery store demanding that they get their money back or they'll hurt my credit. Hell, it is not my fault that "Blank Blank" won't give them their money!!!

Has this ever happened to anyone here? What did you do? My dad said quit the job NOW, but I think that is an extreme move to do at this point.

Kevlar281 · #2 02-05-2002, 03:10 PM

I wouldn’t advise prematurely quitting but I would advise you help yourself to as much office supplies as possible to shotgun your resume to other companies.

ADPiSweety · #3 02-05-2002, 03:18 PM

I used to have this job where I was working 25 hours a week at 9 dollars an hour, then one day when I got to work, they said that they have to cut my hours to only 12 hours a week and lower my pay to 7. I said ok cuz I had another job at the time too, but what really got me mad was then I went into work another day and they said they had to let me go because they had no money. But I agree with what was said up above, don't quit just yet, stick it out.

KillarneyRose · #4 02-05-2002, 08:22 PM

Yes, but what if the bouncing paycheck phenomenon is a recurring thing? No sense working for free when you could be using those hours to look for another job.

Optimist Prime · #5 02-05-2002, 08:41 PM

I would get resume in order and what not, but I would think that not giving up the ship would be better. Like if you went in for an interview and the person asks you "why didn't you quit?" you could be like "i'm loyal and I believe in sticking things out wheather good or bad."

All because of some fricking box that was buried ten years ago. That was on tv.

valkyrie · #6 02-05-2002, 10:48 PM

I think that it depends on what the job is -- is it a career job or just a job job that you're working during college? How long have you been there? If you're working at a store or a restaurant part time, for example, I would probably find something else and/or quit ASAP -- if you could leave pretty easily without disrupting your career, I'd do it.

I don't know offhand how the grocery store could hurt your credit; it's clearly not your fault that the check bounced.

Bridget3D · #7 02-05-2002, 11:41 PM

valkyrie,

I work part time at a store.

damasa · #8 02-06-2002, 11:28 AM

If one of their checks bounced on you already, what's to say that another one, or many other ones won't? If it's only a job to make a few extra bucks here and there, I'd definately try to find another job a.s.a.p. If they bounce checks on you, esentially,you are working for free, and if they file bankruptcy, their debtors are the first to be repaid, you would be one of the last to be repaid. Further, bouncing a certain number of checks on your checking account can actually hurt your credit. Different banks have different policies, but after a certain amount of time, they will report you to chexsystems, and if the account stays overdrawn for more than 30 days, they give it to a credit agency.

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valkyrie · #9 02-06-2002, 01:34 PM

Since it's part time at a store, I would quit. It shouldn't be too hard to find something else, right? And I agree with damasa that they may well keep bouncing checks on you, which is really more trouble than you need.

However, and I won't go into the gory details of bankruptcy law, I can tell you that when a company files bankruptcy, employees are generally among the first (although not THE first) to be paid because their claims are entitled to priority treatment under the Bankruptcy Code. However, dealing with that would be a pain as well. I'd get the heck out ASAP.

damasa · #10 02-07-2002, 03:14 AM

Quote:

Originally posted by valkyrie
Since it's part time at a store, I would quit. It shouldn't be too hard to find something else, right? And I agree with damasa that they may well keep bouncing checks on you, which is really more trouble than you need.

However, and I won't go into the gory details of bankruptcy law, I can tell you that when a company files bankruptcy, employees are generally among the first (although not THE first) to be paid because their claims are entitled to priority treatment under the Bankruptcy Code. However, dealing with that would be a pain as well. I'd get the heck out ASAP.

That's interesting, I've always heard that the debtors of the company were to be paid on priority, the going down from stockholders preferred to common, to employees, than anyone else, but, hell, i'm wrong a lot so, who knows, LOL.

d

valkyrie · #11 02-07-2002, 12:44 PM

Well, you're not exactly wrong -- the statutory priority scheme is kind of complicated. Secured creditors and attorneys (of course

) are usually in the best positions. However, employees are toward the top of the pile in terms of getting $$$, I guess because congress at least *pretended* to care about them when making the law.

As a side note, it is very common for businesses to file "prepackaged" Chapter 11 cases, where they treat creditors of different classes differently, and as long as most creditors approve what is happening (and the judge agrees, of course) some creditors may end up getting a bad deal -- usually the unsecured creditors, like suppliers who didn't get paid up front.

Bankruptcy is a universe unto itself. Geez...sorry for all the boring details.