yea exactly what I said earlier … it’s not for employee compensation. That isn’t a thing. No judge will ever allow creditors to go back and siphon money from an employee who already performed the work to keep the business running that period of time.

its targeted at insiders and creditors. Not employees.

They might go after all those fat bonuses they just paid out … hopefully, and rightfully so. That’s different.

 

Yep, NK has a specific court order from the judge authorizing the payment of prepetition wages in the dockets. It would be incredibly hard for any sort of creditor to attempt to clawback wages that were paid out under a specific court order that authorized those payments. Granted, that order is on an interim basis for now with a final hearing scheduled for Sep 30 as far as any extensions to that order.

 

Does prepetition wages mean money earned before the bankruptcy filling? Meaning all money being earned now is in limbo technically?

 

Cool man. I’m sure Spirit will cut you a check for your unused sick hours when things shut down.

 

I’ve never seen such nonsense and fear-mongering. The idea that Spirit can claw back your normal paycheck is just not true. I asked ChatGPT about this and it flat-out disagrees with what’s being said here.

Bottom line: your regular wages for trips you’ve flown are protected in bankruptcy. Once that money hits your account, it’s yours. The clawback rules in the Bankruptcy Code are for weird one-off pre-petition stuff like bonuses, severance, or insider payments. Not your paycheck.

 

exactly. I think it’s just people on here trying to get a rise out of the uneducated… so sad

 

FWIW. When f9 was in bankruptcy years ago I called and asked fidelity if there was any way possible company matched funds (it was a match then) are at risk. At that time it wasn’t possible for company, the court, or any entity to withdraw or put a lien on that money. So yeah I would imagine that’s also true for non retirement wages, HSA, Parking, uniform cleaning, per diem, ect….

 

I guess the guy who said it happened to him lied then.

 

No, it means they are allowed to continue paying wages as they were being paid prior to filing the petition for bankruptcy.

 

Yes anybody who can ACH into your account can also ACH out of your account. You almost certainly approved that in the fine print when you authorized ACH in the first place.

If they do that, even in error, then it's your problem to get the money back.

If I have any significant cash sitting in checking, I at least move it to savings for that reason. If it's a really large amount I e-transfer it to another bank account.

I had it happen once, complicated insurance claim and the insurance company got confused and decided to "unpay" part of the claim. Fortunately for me I'd already paid the contractors, so the reverse ACH failed due to insufficient funds. But some banks might just tap savings or credit lines to cover a shortfall like that, not sure.

Also why I don't ever use debit cards... is somebody adds a zero to a credit card charge, the credit card company will just reverse it. If it comes out of your checking, that's your problem to try to get it back.