What happens if my employer filed for bankruptcy and owes me money?

Our Professional Answer:

If your employer files for bankruptcy, you need to know what your rights are. You should consult with a bankruptcy attorney, not just a business attorney or a general attorney. If you are on wages, you should file a claim for those wages with the attorney, and if there are other things that you are owed or other considerations, you should ask the attorney about it to see if you are properly due a recovery. That said, many businesses that file for bankruptcy are not closing, they are just seeking to reorganize their finances and there maybe limited impact on your employment and you may go on just fine.