Overview of Limitations on Employee Compensation in Bankruptcy
(Law.com Newswire)

Recognizing the potential consequences, companies in Chapter 11 bankruptcy often try to reduce employee uncertainty by seeking authority from the bankruptcy court. The Bankruptcy Code, however, imposes a variety of limitations on the ability of a debtor-employer to provide certain types of compensation and benefits to `insiders,` a term that is broadly defined in the Bankruptcy Code.        Â