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What Happens to Employees When a Company Files for Bankruptcy? (Yahoo Finance)
Yahoo Finance, November 15, 2022
What Happens to Employees When a Company Files for Bankruptcy?
City Bar Justice Center explains in a guide that in a Chapter 7 bankruptcy, the company stops its operations and goes out of business. In turn, employees are laid off, and those who are owed wages and benefits become creditors. The proceedings can take a long time and laid-off employees should immediately apply for temporary benefits, such as unemployment insurance, and seek new employment, according to the City Bar Justice Center.
