Does H1B status affects if employer files bankruptcy?

[krishsm]

I’m working for an employer since 2011 on H1B and having I140 approved. I never had any problem with the company payroll and all of sudden due to some financial issues within the firm, they are having trouble in running the payrolls. From a reliable source in the company, I just came to know that they filed bankruptcy two weeks ago. This is not 100% sure as I have not received any email or note from employer that they filed bankrupts. My last paycheck ran on Nov 4th.

 

I was already planning to switch another firm (Employer B) and accepted the offer. Now Employer B was already in process of filing my H1b transfer request in premium on Dec 5th 2016 as my joining date with Employer B is on Dec 15th 2016. I already submitted all the required documentation for H1b transfer and they are in processing of filing.

 

With this situation,

1. How am I affected if my employer files bankruptcy? Am I out of status right now?

2. Do I have time to change the employer, if my current H1B status affects – at least two to three weeks?

Any information that you provide will be helpful to me. Thanks in advance.

[pontevecchio]

Bankruptcy does not directly affect you. Worst case the transfer is approved without I94 and you return with the visa.

[JoeF]

It wouldn't affect you directly, unless you get laid off. As employee, you still need to get paid properly.

There are two forms of bankruptcy, Chapter 11, which is about reorganizing the company so that it can continue, and Chapter 7, which is about shutting the company down.

I think there are requirements to inform the employees about a bankruptcy filing.