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Author: Jeremy One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Employer Out of Business, Money Owed Date: 1/29/2002 12:46 PM
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Earlier this year my employer went out of business. Technically, they went for an "Assignment for the Benefit of Creditors." I have been informed by the Assignee company that their common stock is worthless as of the assignment. I am owed a bit of money for approved employee expenses. I submitted expense reports and they were approved by the company's accounting department. There is no possibility of receiving payment. The company had $50 million in secured debt and considerably less in assets. I am unclear where (or if) I can deduct this debt. I sent the receipts to my employer, so it would be difficult to substantiate my deduction for unreimbursed employee expenses. Is it possible to treat this as Business Bad Debt? The company acknowledges the amount owed and I have submitted a "Proof of Claim" form to the Assignee company.

Any thoughts?

Thanks,
Jeremy
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