The small tech company I work for just went bankrupt, I’m still waiting on my last 2 paychecks totaling $17K, and my boss is ‘ghosting’ me — I really need that money. What can I do?

So, let’s say you worked for a small independent tech company that ultimately went bankrupt — leaving you missing out on your two final paychecks totaling $17,000. Now, your former boss has gone AWOL. What can you do to ensure that you’re paid what you’re owed?

Here's what you need to know in this situation — along with some insight into the likelihood of actually getting paid.

What happens when a company goes bankrupt?

If the company where you're employed goes under, the law states that you still have a legal claim to any outstanding money still owed to you. The problem, however, is that having a legal claim and actually getting paid are two different things.

In this hypothetical situation of the bankrupt indie tech company, you'd be treated as a creditor — meaning: someone the company owes money to. The good news is, you're a high-priority creditor.

According to information from the City Bar Justice Center, secured debts (debts secured by collateral, such as property) are typically the highest priority when collecting payments in bankruptcy proceedings, but unpaid employee wages and benefit claims are "priority unsecured debt,” so your claims are placed above other unsecured debts — such as credit cards.

This priority status includes employee claims on unpaid wages, salaries, commissions, vacation days, severance, and sick leave pay — so long as it was earned within 180 days of the company's bankruptcy filing or the time the company discontinued operations (whichever came first).

As an employee, you’d be entitled to up to $15,150. Note: this amount is adjusted every three years — with the next adjustment set to take place in 2025.

For any claims outside of the aforementioned 180-day timeframe or that exceed the maximum dollar amount owed doesn’t have priority status and will be treated as “general unsecured claims.”

However, even though your claim is prioritized above others, you still may not get paid all — or even some — of what you’ve earned.

You'd need to make your claim with the bankruptcy court, and there must be enough money or assets available to pay you.

How to get what you’re owed

If you want to petition any wages or benefits owed to you, you'll first need to complete, sign, and submit a Proof of Claim form to the bankruptcy court. Filing this claim is time-sensitive, so you’d have to act quickly and file on or before the deadline.

Provide documentation proving you're owed money and evidence of how much you're owed. You also must include the bankruptcy case number, company name, and location of the bankruptcy court where the case has been filed.

However, filing a Proof of Claim only means you’re listing your past-due amounts. There’s still no guarantee that those debts will be paid.

In addition, according to the City Bar Justice Center, the proceedings can take a long time, so it’s advised to seek temporary benefits and new employment immediately.