Basically, it is possible that some or all the money paid to you since entering into bankruptcy was supposed to be part of the estate when it comes to liquidation.

When Spirit liquidated in say, October, it may happen that a sum of money is entitled to creditor so and so who has priority before you the worker. So that money could be clawed back at any moment.

Even if you leave Spirit prior it being shutdown, as long as your bank info is know to the estate your money could be sized.

Shutdowns are no fun.

 

Ok. Now let's say I move that money ASAP out of that account, or immediately close the account upon liquidation. Can Spirit come after me for money?

 

Unlikely since the work required for the value gained per individual wouldn’t necessitate it.

 

Assuming you are an average worker, that legal maximum they could claw back from you is 90 days of pay. While Spirit is unlikely to be that substantially in arrears when it is shut down you should be prepared for that much exposure.

The first thing they will do is attempt a clawback like you normally would - take money out of the checking account in question.

When that doesn't worm because you keep your money outside of the account, it becomes much harder for them to get to your money.

They have to demonstrate to the court that money in another account is truly money meant for the bankrupt estate and then get court approval to seize your money.

That of course takes time and money, and often isn't worth pursuing for most creditors.

Another defense is to spend that money on a legitimate transaction. so if you see an attempt to clawback the money from your empty checking account, you need to find some way to spend the money in question.

Eventually after the creditors identify where the money went and get approval to take it, you can say too bad I spent my money on landscaping I've been planning for months.

 

1) start a new account in a new bank and take the money out cash ASAP every time
2) they can but they won't because it will require suing you

 

This advice is better than mine.
Many captains at Spirit when it shuts down, if they are early fifties or older, will never again see the earning power they have today.

Funnel your money into a separate bank and dare them to sue you for it. Very high barrier for them and you're gonna need that money for kids college/your retirement etc.

You should read the court dockets if you haven't already. Some of them are plans creditors are putting forward. They intend to liquidate - what they do with the assets after varies, but they all intend to liquidate Spirit. It. Is. Over.

 

This is exactly why setting up a trust for your assets and money is a great idea. Low cost and high reward to find an attorney to structure and set it up how you would like for the long term.

 

I don’t believe this to be true at all. Clawback is for pretty much anything except employee compensation. They can’t come and grab your check after you performed the work. Stop trying to scare people.

 

That’s all this sub forum is now. People feigning concern while pushing worst case scenario narratives. Every time I check back in here it’s just an avalanche of schadenfreude. I hope everybody is enjoying themselves.

 

See 11 U.S. Code § 547(b)
Just because you don't want it to be so doesn't make it's so.