Payroll Checks Under Chapter 11

Answer:

Recently, a client asked whether on behalf of his business he could continue to pay his employees during the pendency of the Chapter 11 bankruptcy case. The answer is usually yes, but it requires that the attorney has first filed what’s called one of the first-day motions; in other words, it’s a motion where the debtor is requesting permission from the bankruptcy court to continue its business operations, such as making payroll. Routinely, these orders are granted with certain considerations that the court looks at closely, but it’s a very good question.

If you, a friend, or a family member own a business and are considering Chapter 11, my suggestion is to pick up the phone and give us a call here at Perenich Law Injury Attorneys. We’ve been representing bankruptcy debtors in all chapters of bankruptcy, including Chapter 11, throughout the state of Florida for about 30 years. We are happy to help.