Can I collect unemployment if my employer goes bankrupt?

Your unemployment benefits will continue even if your employer declares bankruptcy. Your former employer has a legal responsibility to pay unemployment insurance for employees to the agency that pays your unemployment benefits, but your employer’s inability to pay or cessation of business does not affect your right to unemployment benefits.

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What is unemployment insurance?

Unemployment insurance, also known as unemployment benefits or state unemployment benefits, is a type of temporary insurance coverage that is given to individuals who have lost their jobs. Unemployment is generally required by state laws, and the employers in a state must pay into the unemployment insurance fund based on the size of the company that they operate and the number of employees that they have.

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