Business Bankruptcy and Employees

When a business is struggling or fails to generate sufficient revenue to cover expenses and debts, the business owners may choose to file for bankruptcy. Most businesses will typically reorganize under Chapter 11 or will liquidate under Chapter 7 bankruptcy. Whatever the outcome, the employees of the business may find that their livelihood, benefits, and pensions are affected by the bankruptcy.

It is important that employees of businesses going through bankruptcy research their specific pension and benefit plans and educate themselves on the specifics of their policies. If you have any questions regarding business bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.

Steps You Should Take

When a business files for bankruptcy, employees should:

• Contact the benefits administrator or union representative for details on their specific plans.
• Review all pension and benefit paperwork for bankruptcy clauses or action plans.
• Organize any and all relevant paperwork involving pension statements, 401K plans, and health benefits.
• Find out who will be the benefits administrator once the bankruptcy is complete.
• Ask how accrued benefits will be paid following the bankruptcy.
• Ask about COBRA coverage if your employer’s health plans are cancelled outright.

Employees often find that thorough organization, research, and communication can help answer questions and resolve issues that arise when a business enters bankruptcy proceedings.

Contact a Boston Bankruptcy Lawyer

If you have questions regarding business bankruptcy or are considering filing for bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.