What happens to my salary if I have to file for bankruptcy?
May 29, 2024 | 40,00 EUR | answered by Katja Winterberg
Dear bankruptcy attorney,
My name is Helma Breitwieser and I am currently facing the difficult situation of having to declare bankruptcy. I work in a small company and my monthly salary is my only source of income. Now I am worried about what will happen to my salary once I have to declare bankruptcy.
My monthly salary is essential for me to cover my ongoing expenses such as rent, electricity, groceries, and other costs. I fear that I will be in financial distress if my salary is jeopardized by the bankruptcy. I am also concerned about how I will repay my debts if my income is affected by the bankruptcy.
Therefore, I would like to ask you what will happen to my salary when I have to declare bankruptcy. Will my salary payments be frozen or reduced? Are there any ways to secure my salary to continue covering my ongoing expenses? What steps should I take to protect my income during the bankruptcy?
I thank you in advance for your help and advice in this difficult situation. Your support means a lot to me.
Sincerely,
Helma Breitwieser
Dear Mrs. Breitwieser,
I understand your concerns and fears regarding your financial situation if you have to file for bankruptcy. It is important to be aware of the impact on your salary and income. Let me provide you with some information on this matter.
First of all, it is important to know that your monthly salary as an employee is generally protected, even in the event of your employer's bankruptcy. This means that your employer is obligated to continue paying you your salary as long as you perform your work duties. Even in the bankruptcy proceedings, you have a right to your salary, which is considered a priority debt and will be paid out accordingly.
However, there may be delays in payment in certain cases, especially if the bankruptcy proceedings are complex or if your employer is insolvent. In such cases, you can contact the bankruptcy court or the trustee to assert your claims and expedite the payment process.
To secure your income during bankruptcy and cover your ongoing expenses, it is advisable to create a household budget and review your expenses. You may also check if you are eligible for government assistance, such as unemployment benefits or social welfare.
It is also important to seek professional help to analyze your financial situation and find possible solutions. A bankruptcy lawyer can assist you in defending your rights and taking measures to protect your income.
I hope this information helps you and provides you with some reassurance during this difficult time. Please do not hesitate to reach out to me if you have any further questions or need support.
Best regards,
Katja Winterberg, Bankruptcy Lawyer
