The firm for which you have worked for 6 years has filed for Chapter 11 bankruptcy. What this means to you is:
A)you will receive your wages going forward without fail, as you are now a secured creditor
B)you are likely to receive your wages going forward, as they have a high priority in bankruptcy cases like this one
C)your union contract as to wages and benefits is null and void

Question

Quizplus · Accepted Answer

Wages owed to employees are given high priority in bankruptcy cases, ensuring that employees are more likely to be paid for their work even as the company reorganizes its finances under Chapter 11 bankruptcy protection. This does not make employees secured creditors, but it does prioritize their wages over some other financial obligations of the company.

The Firm for Which You Have Worked for 6 Years