Thread regarding Dream Center Education Holdings, LLC (DCEH) layoffs

Bankruptcy related question

Everyone should hope that DCEH files for bankruptcy. At least under bankruptcy laws any unpaid employee wages take priority over all other debtors.

Is this true? I thought that if a bankruptcy happens, employees are last on the list when it comes to any kind of compensation.

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| 894 views | | 6 replies (last )
Post ID: @Yav6FP7

6 replies (most recent on top)

DCEH, receiver and judge need to secure funds from DCF.

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Post ID: @Yav6FP7-1yix

DCEH is administratively insolvent. They don't even have enough money for lawyers and the court much less employees and creditors. Title IV funding was yanked in the midst of all of this and they were already unable to keep the lights on with it in place. The judge just mismanaged everything every which way, and now he's basically left running the show by default because everything collapsed too fast for anyone else to even step in.

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Post ID: @Yav6FP7-1axn

Read the bankruptcy laws. Any unpaid wages are FIRST on the list. True, it may take awhile and you may not be compensated dollar for dollar but unpaid wages takes priority over all creditors whether secured or unsecured.

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Post ID: @Yav6FP7-wod

That’s not true. Employees are first to be paid, after legal fees, yes. But we are not considered creditors at all. We will be first to receive any funds, after liquidation. It may or may not be the full pay, however. That would depend on the amount of liquid funds available and the amount all employees are due. But yes it may be months before we see anything.

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Post ID: @Yav6FP7-ldt

$0 is still $0 whether it's in receivership or bankruptcy. There's no money for anyone.

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Post ID: @Yav6FP7-zut

Under bankruptcy, unpaid employees become an unsecured creditor and would be placed at the bottom of the list. Secured creditors (landlords, suppliers, utilities etc...) and attorneys come first. As DCEH has no cash left, bankruptcy would basically guarantee unpaid employees would not see any money. Additionally, bankruptcy takes years to settle and if there were some extra money left over to pay unsecured creditors, it would likely be 2 or more years to see payment.

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Post ID: @Yav6FP7-tdg

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