Severance Pay and Bankruptcy: A Dangerous Combination
Protecting owed severance pay in bankruptcy can be difficult. A main concern when this happens is that if an employee is still awaiting severance pay when the company files for bankruptcy, the money owed to the former employee is put under risk.
By law, under a company-filed Chapter Seven bankruptcy, expenses like severance pay are lumped together with the 'unsecured creditors' that filing for bankruptcy is intended to protect them from. This makes for a challenging legal battle for former employees expecting remuneration along with other benefits owed.
Depending on the gravity of the cases involved, some people seek out legal counsel to assist in collecting these said fees. While retaining a lawyer can help, such arrangements often make for poor returns against the amount of time, money and effort to be invested. Legal fees can consume most of whatever money may be earned, especially considering the fact that collecting owed severance pay in bankruptcy almost certainly take long.
For this reason, many ex-employees seek a quick resolution to severance package negotiations, especially in today's economic situation. Most companies give employees up to 21 days to agree on a given severance package, and many employees collect as soon as possible without realizing that they are within their rights to negotiate for more. In light of this and other compensation issues, labor law firms and human resource specialists have begun to provide services that help employees claim their severance pay as bankruptcy procedures continue on.
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Career Protection is an HR firm that employs lawyers and professionals dedicated to helping protect workers' severance pay in bankruptcy proceedings, as well as assisting new employees in negotiating for the best deal in a new job. Their services stem from decades from working in labor relations and law, both as part of large companies and on the side of employees, making for a strong partner in making the most of one's career. For more information, call 1-877-475-2942 or visit http://www.careerprotection.com.
By law, under a company-filed Chapter Seven bankruptcy, expenses like severance pay are lumped together with the 'unsecured creditors' that filing for bankruptcy is intended to protect them from. This makes for a challenging legal battle for former employees expecting remuneration along with other benefits owed.
Depending on the gravity of the cases involved, some people seek out legal counsel to assist in collecting these said fees. While retaining a lawyer can help, such arrangements often make for poor returns against the amount of time, money and effort to be invested. Legal fees can consume most of whatever money may be earned, especially considering the fact that collecting owed severance pay in bankruptcy almost certainly take long.
For this reason, many ex-employees seek a quick resolution to severance package negotiations, especially in today's economic situation. Most companies give employees up to 21 days to agree on a given severance package, and many employees collect as soon as possible without realizing that they are within their rights to negotiate for more. In light of this and other compensation issues, labor law firms and human resource specialists have begun to provide services that help employees claim their severance pay as bankruptcy procedures continue on.
<Resource Box>
Career Protection is an HR firm that employs lawyers and professionals dedicated to helping protect workers' severance pay in bankruptcy proceedings, as well as assisting new employees in negotiating for the best deal in a new job. Their services stem from decades from working in labor relations and law, both as part of large companies and on the side of employees, making for a strong partner in making the most of one's career. For more information, call 1-877-475-2942 or visit http://www.careerprotection.com.
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