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What happens to employees whose company files chapter 7 bankruptcy?
Wiki User
∙ 14y ago
It's possible, especially if your position requires being bonded. Many employers that handle other people's funds think that insolvency poses a risk to their clients' funds. Read your employment contract or or personnel manual that you received when you were hired, or ask HR.
Wiki User
∙ 15y ago
Wiki User
∙ 15y agoWell, not for absolute...but likely. C-7 is a dissolution BK...meaning the company and it's operations cease. Of course the assets and things of vaue are sold off to realize as much as can be to pay the creditors...so if your division (or whatever) is wanted by a buyer...and they want the workforce...you can come out OK..even better if it is a strong buyer.
Wiki User
∙ 11y agoI've been involved with several. Most simply, there is no hard and fast rule. C-11 evolve many ways. Some are simply financial re-organizations, but more and more they begin to look like C-7 with dissolution of the Company by the end. And of course, anything in the middle too. Even when the corporation dissolves, that does NOT mean the end of your job...likely large job losses along the way, sure...but if a division or operation gets sold off, depending on to whom and what it does, it may actually be very good for some and very bad or loss of job for others. For example, accounting and management become redundant with the new owner...but the guy running the equipment...he may well find he now works for a much more stable employer that is able to expand the product lines he works on. It simply depends. Your payroll (but not all your benefits, which may go through changes), are pretty well secure through the BK process.
Wiki User
∙ 14y agoDepends...many times the Co, or the operation/divisipn, whatever they are part of is bought and continued, maybe even expanded beneficially. Many times the Co closes and tha about it. In virtually any case, the employee IS paid for their work, before anyone else.
Wiki User
∙ 14y agoIf you first were filing a chapter 13 you can change that to a chapter 7, it is called "motion to convert".
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What happens if you wreck your car after filing for Chapter 13 bankruptcy?
If you wreck your car after filing for Chapter 13 bankruptcy you can file it on your insurance. You can then replace your car based on the bankruptcy order.
If you file chapter 7 bankruptcy what happens with your state pension plan?
Uneffected.
What happens if you have a workmens comp claim and the company files Chapter 7 bankruptcy?
Your claim is most likely covered by a WC insurance, either a prvate policy the employer had or one with the State. As such, your claim should be unaffected by the Bankruptcy.
What are the difference between Chapter 7 vs Chapter 11?
The difference between Chapter 7 bankruptcy and Chapter 11 bankruptcy is what happens to a party during the process. Parties undergoing chapter 7 bankruptcy must sell of their assets in an attempt to pay off dept. Chapter 11 allows for one to attempt to maintain their assets. During chapter 11 bankruptcy the party must negotiate with creditors to stay afloat.
What typically happens to ones retirement if a company declares bankruptcy?
If a company manages its own retiements system, the funds of the system are lost if the company declares bankruptcy. In the United States there is a system for insuring retirement systems, but the payout to individuals is generally much less through insurance than would have been provided by the retirement system itself. If a company has its employees contribute to a retirement system managed by a third-party provider, those employees who are vested in their accounts may not loose them if the employer declares bankruptcy.
The Two Major Corporate Bankruptcy Filings?
Just like people, sometimes a corporation accrues more debt than it actually has the ability to pay back. When this occurs, a corporation sometimes declares bankruptcy. However, corporations do not always use the same kinds of bankruptcy that individuals use. The two most common corporate bankruptcy filings are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7, which can also be used by individuals, is for businesses that are giving up entirely. If a company declares Chapter 7 bankruptcy, that company will cease operations immediately. At that point, legal ownership of the company is transferred to the bankruptcy court. When ownership of the company is transferred to the court, a lawyer will be appointed by the court to oversee the rest of the bankruptcy. This will include overseeing the closing of that corporation's facilities. It will also include a liquidation of the company's assets. The assets will be sold, and the proceeds of those sales will be used to pay back creditors that are owed money by the company. Chapter 11 bankruptcy, not used by individuals, is a bit different. Instead of the business being closed, the business is allowed operate normally during the bankruptcy. The goal of a Chapter 11 bankruptcy is the restructuring of the corporation so it can be profitable once again. There is also another potential benefit from this kind of corporate bankruptcy. All or a good portion of the company's previous debts and other obligations may be absolved. This is due to the fact that the goal of Chapter 11 bankruptcy is reorganization. Debt or other obligations that would force a company to go out of business may be removed to help that occur. Obligations other than debt that may be set aside by the court can vary. Usually this includes things such as agreements with unions on employee pensions and benefits, leases for real estate and other expensive contracts. However, even if a corporation attempts to enter Chapter 11 bankruptcy, there is still a risk that the company may be liquidated as part of a Chapter 7 bankruptcy. This can occur if a plan is not agreed upon by the corporation, its creditors and the court. If this happens, the only remaining options are either entering Chapter 7 or returning back to the company's pre-bankruptcy state. Since the company entered bankruptcy because survival without reorganization was unlikely, both choices are rather undesirable.
You are currently in a chap 13 bankruptcy can I change to a chap 7 bankruptcy?
You cannot change my bankruptcy, but you can convert your Chapter 13 to a Chapter 7. It happens frequently. You may want to check with your lawyer or an experienced lawyer since it can have unintended consequences.
What happens when business firms fail to sell it's product?
Company gets troubled with the low benefits on products which results into a heavy loss with the bad reputation of company. It may have happen due to bad marketing strategies, employees, dealers, over expansion, or location.
When a company files bankruptcy what happens to the union contracts?
They can be changed by the Court.
What happens to someone in a personal bankruptcy?
It depends on whether or not you qualify for Chapter 7 or Chapter 13. For Chapter 13, you will slowly have to pay your creditors back over time. For Chapter 7, you have to assign a value to everything that you own. The creditors will then determine whether or not these items will be included in the bankruptcy in a hearing.
What happens to your wage garnishment when the company files bankruptcy?
your wages still garnished
What happens when a business is owed money by a company that files for bankruptcy?
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