Anyone know about bankruptcy?
admin | Mar 31, 2010 | Comments 1
I worked for a corporation that is going out of business. The owner is filing personal bankruptcy. The company owned several recurring contracts worth several thousand dollars, and these accounts had a lien on them in case the owner attempted to sell the contracts. We have since gone to work for another company, and they sought after to own the contracts with the lien. Instead of paying my former boss for the contracts, they simply took them over and have padded her pay for a year in the exact amount she would have sold the contracts for. I was told it was done to make sure she did not lose her assets in the pending bankruptcy. This seems shady to me, and I am worried about what kind of company I am working for. Anyone know if this is illegal?
Popularity: 1% [?]
Filed Under: Bankruptcy
I am not a legal expert so I am not certain if any laws were really violated. But, this is certainly not ethical in my opinion nor is it following the “spirit” of the bankruptcy laws which are designed to protect the creditors of a business when that business cannot pay its debts. Frankly, I would have an issue with the owner as well as the new company as she is the one who is accepting payment “under the table” for those contracts when any payments should not be going to her but to the creditors of the business who have likely lost quite a bit of money and will not be able to recover anything from the “salary” payments made to the owner directly. If I were you, I would initiation looking to disassociate myself from the owner and the new company as soon as is feasible. Their lack of ethics and integrity could end up harming you personally before long…