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The Justice Center News blog features our advocacy on issues affecting low-income New Yorkers today and the latest CBJC happenings.  For press releases, click here. For publications, click here.

What Happens to Employees When a Company Files for Bankruptcy?

by CBJC Staff November 16, 2022

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.

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