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To: cornfedcowboy
This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

Most likely your brother will not get the money he is owed. Was he an employee of the company or was he 1099 billing the company? If he was 1099 billing the company then he probably has a better chance because he becomes one of the creditors, at least I believe that would be the case.

You can usually consult with an attorney for no charge to describe the situation, or perhaps a nominal fee. But that would be the way to start. The chances of the right person, to answer these questions knowledgably, even seeing this thread are slim at best.

12 posted on 03/14/2016 10:56:27 PM PDT by Robert DeLong (u)
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To: Robert DeLong

I dont think I agree with you on that. An employee has better standing in a bankruptcy than an unsecured 1099 creditor. Generally the pecking order is secured creditors, employees and the the rest divide it up. Normally an employer knowing they are going to reorganize will have packed away as much in the payroll account as they think they can get away with. Does not sound like the situation in this case. Happy to be corrected if I am wrong in any of this.


21 posted on 03/15/2016 12:06:09 AM PDT by gunsequalfreedom
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