What happens to crew wages if a shipping company goes bankrupt?
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What happens to crew wages if a shipping company goes bankrupt?

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14.08.2026

I work as crew on a vessel operated by a shipping company based in Malta, and there have been concerning signs the company might be facing serious financial difficulty, potentially heading toward insolvency. I’m worried about what would happen to my unpaid wages if the company actually goes bankrupt.

Site Administration 18.08.2026
reply date: 18.08.2026

Seafarer wages generally receive specific protection under Malta's implementation of the Maritime Labour Convention (MLC 2006), which recognises the particularly vulnerable position seafarers can find themselves in if an employer becomes insolvent, including provisions addressing financial security for repatriation and outstanding wage claims, and unpaid crew wage claims can also often benefit from a privileged or preferential status as a maritime claim under principles connected to the Merchant Shipping Act, Chapter 234 of the Laws of Malta, meaning crew wage claims can, in certain insolvency scenarios, potentially rank ahead of many other creditors when a vessel or shipping company's assets are being distributed. If your specific employer does become insolvent, the practical process for actually recovering unpaid wages would likely involve formally lodging your claim within whatever insolvency or liquidation process applies to the company, and depending on the specific circumstances, your wage claim might also give rise to a maritime lien allowing a claim directly against the vessel itself, separate from a general claim against the company's broader assets, which can be a particularly valuable form of security for seafarers in this situation. Given the genuine complexity and urgency of protecting your position if your employer's financial situation is deteriorating, it would be advisable to seek advice from a maritime employment lawyer promptly, both to understand your specific rights and to ensure you take any necessary steps to properly preserve and assert your wage claim.

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