Can I Collect Unemployment if My Job Goes Bankrupt?
A company bankruptcy can really shake up things around the water cooler. In the worst cases, you may find yourself out of a job. Fortunately, a company bankruptcy doesn't keep you from collecting unemployment benefits.
Other People Are Reading
-
Bankruptcy Doesn't Mean Unemployed
-
Just because your employer files bankruptcy doesn't mean that you're out of a job. Bankruptcy can have several effects on the employees of a company. If a company files a reorganization bankruptcy, you may just find that the structure of your company changes. If your company liquidates, another company may buy the entire thing or portions of it. Either way, it's possible for your company to file bankruptcy and for you to keep your job.
When Bankruptcy Does Mean Unemployed
-
When a company's bankruptcy does put you out of a job, you usually qualify for unemployment benefits because your job separation can't be attributed to you. You also have to meet the rest of your state's eligibility requirements, which can vary depending on the state. Generally, you must have enough previous wages to qualify, be able to work and willing to work.
-
When to Apply
-
You should apply for unemployment benefits as soon as possible. Delaying your claim can delay your benefits or even leave you ineligible. However, you can't apply for unemployment until you're actually unemployed. You can't apply as soon as you learn of your company's bankruptcy. Instead, wait until your employer ends your employment.
Will the Bankruptcy Affect Your Benefits?
-
Claimants sometimes wonder if their unemployment benefits can be affected if their former employer files bankruptcy. However, your state collects payment for unemployment insurance from companies every quarter and holds the funds in a trust for unemployment benefits. By the time your company lays you off, it has already paid for your unemployment benefits. Even if it didn't, the state would pay your benefits. and So you don't have to worry about your benefits being delayed because your company doesn't have the money to pay for them.
-
