Answer:

One of the questions that always happens in a Chapter 12 bankruptcy since it is dealing with a business and farming enterprise is whether or not the debtor can issue payroll checks on its payroll account in a Chapter 12. The answer is yes. You obviously would want to set up a separate debtor in possession account for a Chapter 12 bankruptcy, but yes, you can always pay your employees in a Chapter 12 bankruptcy pretty much like you always have. There are certain qualifications necessary to be sure that the cash that you’re paying those employees is authorized by the court. That’s one reason that you would want to use an attorney who’s experienced in Chapter 12, who knows the trustee, knows the judges, and knows the proper court procedures to get that done for you. If you have any questions, please give me a call.