Stephens, an employee of bankrupt ABC Company, would be able to receive her $2,000 in unpaid wages earned within 90 days before ABC's filing of the bankruptcy petition and $2,000 in contributions to her employee benefit plans, for a total of $4,000 before any money is paid to Ramsdell, a consumer, to compensate him for a deposit paid to the company for goods which were never delivered because of the company's going bankrupt.

Question

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In bankruptcy, unpaid wages and employee benefit contributions have priority over consumer deposits. Stephens' claims are prioritized under the U.S. Bankruptcy Code, which allows her to receive up to $15,150 in unpaid wages and benefits before consumer claims are addressed.

Stephens, an Employee of Bankrupt ABC Company, Would Be Able