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What happens to your severance pay if the company goes bankrupt?
Hello,
Thank you for your question.
Even if you are owed severance, if the company can prove it went bankrupt (and that it didn't simply funnel monies into a different area to avoid paying you), it is very unlikely you would be able to collect anything.
It would be on the company to prove they are bankrupt, so the burden can be pretty high, but as the old adage goes, you cannot get blood out of a stone unfortunately.
Thank you for your question.
Even if you are owed severance, if the company can prove it went bankrupt (and that it didn't simply funnel monies into a different area to avoid paying you), it is very unlikely you would be able to collect anything.
It would be on the company to prove they are bankrupt, so the burden can be pretty high, but as the old adage goes, you cannot get blood out of a stone unfortunately.