If an employer files for Chapter 11 bankruptcy, employees are in a better position than they would have been under other forms of bankruptcy.

Question

Quizplus · Accepted Answer

Chapter 11 bankruptcy allows a company to reorganize its debts and continue operations, which can preserve jobs and potentially ensure that employees are paid, unlike liquidation under Chapter 7 where assets are sold off and the company ceases operations.

If an Employer Files for Chapter 11 Bankruptcy, Employees Are