Alabama Code 25-4-135. Effect of bankruptcy or liquidation of employer
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Terms Used In Alabama Code 25-4-135
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Contributions: as used in this chapter , means the money payments to the State Unemployment Compensation Fund, required by this chapter, on the basis of a percentage of wages. See Alabama Code 25-4-5
- State: as used in this chapter , includes, in addition to the states of the United States, the District of Columbia, the Virgin Islands, Puerto Rico, and Canada. See Alabama Code 25-4-14
In the event of bankruptcy of any employer, or of liquidation of an employer under any law of this state by reason of insolvency or inability to pay his debts, the amount due for contributions on behalf of the employer shall have the same status and priority as other taxes due the state; provided, that in the event of an employer’s adjudication in bankruptcy, a judicially confirmed extension proposal or a composition of creditors under the Federal Bankruptcy Act of 1898, as amended, contributions then or thereafter due shall be entitled to such priority as is provided therein for other taxes due and owing this state.