When a corporation files for bankruptcy, the fallout may impact employees, suppliers, as well as state and local economies. These impacts may occur over a two to three year period or longer depending on the type and size of business that declares bankruptcy.
A business may cut its operations and decrease the number of workers in order to reorganize under bankruptcy. If the business fails to emerge from bankruptcy, the impacts will likely be greater.
Businesses filing bankruptcy impact employees severely when implementing mass layoffs or issuing wage decreases.
An employee may have to declare bankruptcy when they lose their job or receive a pay cut. In fact, most people who file personal bankruptcy declare job loss or low pay as one of the reasons they are filing for bankruptcy.
If the company you worked for has filed bankruptcy and you’re concerned about your own finances, consider speaking with a bankruptcy attorney today.