Employee rights company liquidating
All the company’s trading books, records and other documents of title, chequebooks, bank cards and correspondence are listed and their location noted before being seized and removed from the premises.
This form shows employees how much tax they have paid on their salary so far in the tax year.
This article explores some of the ways that Chapter 11 affects that workforce, and what you need to know when your company joins the ranks.
Your rights as an employee differ depending on whether your company filed a Chapter 7 liquidation case or a Chapter 11 reorganization case.
For a primer on Chapter 11, read What is Chapter 11? Also check out: Timeline of a "Typical" Corporate Chapter 11.
When a company files Chapter 7, it ceases doing business, but a company that files Chapter 11 usually intends to continue in business while it negotiates with its creditors to reorganize its debt.
It does so under the protection of the bankruptcy court, meaning that many of its actions have to be approved by a bankruptcy judge, and creditors also have to seek court approval before they can take any action against the company.