Employee sues Kodak, cites bankruptcy for drained retirement plan
On behalf of Ellett Law Offices , P.C. posted in 1. Personal Bankruptcy on Thursday, February 2, 2012
Kodak filed for bankruptcy two weeks ago, and there has been a backlash from employees concerning the rapid demise of the company. These employees have invested time, energy and money into the company, and for some, their retirement plans have evaporated. One of the ways employees invested in their 401(k) retirement plan was through stock in the company. Once worth $31 per share, Kodak’s stock was worth 35 cents per share as of Monday.
Responding to his depleted retirement savings as a result of Kodak’s bankruptcy, one employee is filing suit against the company. Claiming that Kodak did not properly protect its workers and their retirement plans as the company took a nosedive, the employee says that Kodak is liable for the retirement losses suffered by its employees.
It is not unusual for employees with a stake in a bankrupt company to investigate management’s part in the company’s predicament, and to see if they are liable for employee losses as a result of their position with the company.
Many people work hard and diligently save so they can retire at the right time. Kodak’s bankruptcy radically affects the lives of its employees, especially those planning long-term. If the losses were significant enough, some Kodak employees may be placed in a tough financial situation where they may consider personal bankruptcy.
This may seem like a complicated decision, and while it isn’t always a straightforward process, filing for personal bankruptcy is not an indictment of your financial failure – especially in the case of Kodak’s employees, which seem to have been wronged. Personal bankruptcy is a way for decent, hard-working people to reorganize their finances and get themselves on an even better path for future success.
Sometimes people can be stretched too thin financially. It happens, and filing for bankruptcy is a legal option to help you recover. Consult a determined bankruptcy lawyer to review your situation, and find out if filing for Chapter 7 or Chapter 13 bankruptcy is right for you.
Source: Democrat and Chronicle, “Lawsuit takes aim at Kodak,” Matthew Daneman, Jan. 31, 2012
Tags: Kodak, personal bankruptcy, retirement plans