Will an Employment Contract`s payout survive bankruptcy?
February 19th, 2009 by Questions
I file bankruptcy May last year. I was getting my automatic discharge on Jan this year but I have not been able to pay the trustee so far. Before I filed for bankruptcy last year, I had an employment agreement with my employer. The agreement called for a large sum of money to be paid out to me if I was let go. I was fired and never got such payment. The trustee told me this contract was not an “asset” sense it only had value to me if I ever took the employer to court. (The agreement has a no transferable clause). He told me that if I took my ex-employer to court during my bankruptcy, then he would be first in line for anything I ever got. I never had money and I never took my ex-employee to court. After one year, things have changed and I might be able to take them to court to get my money.
If I take my ex-employer to court for a pre-existing employment agreement and if I get any money out of it:
1) Can either the creditors or trustee claim rights to the money if I get any?
2) Can the ex-employee claim the contract void because I was fired before my bankruptcy?
3) Sense I am not discharge yet, can I ask or do anything with the trustee to allow me to keep any revenue from this employment contract?
Posted from: Ontario