I was laid off due to COVID-19. My former employee offered a severance to be paid on a biweekly basis. They have since filed for Chapter 11 bankruptcy. So far, they have continued to make the payments. My question relates to filing as a creditor. If I file, will my former employer stop making these payments until a decision is made by the courts, or will they continue paying until a decision? Thank you.
They will likely continue to pay since employee benefits are unsecured priority claims that still have to be paid.
