Thread: No salary as a result of bankruptcy

I'm actually asking this question for someone that I know and more for my information.

Ok, here's the story:

You own a business which is a corporation, you are the sole share holder. You are also employed by your company in a salaried position. You file for Chapter 11 Bankruptcy and the court forces you to take a reduced salary.

This has actually happened twice and now you are making less money than your employees to own, run, and manage your business.

The problem is this, now the bankruptcy court is proposing to take away your salary completely, leaving you with zero income, no way to to pay your personal expenses or put food on the table, maybe forcing a personal bankruptcy, yet expects you to continue to work in the same capacity as you have been.

Is it legal for them to do this? Even if you are employeed by your company and receiving a salary? (Yes, the original salary was inline with the median salary for that particular management position.)