Regarding the bankruptcy filing of an employer, which of the following statements is NOT true?
A)employees are secured creditors
B)employees are unsecured creditors
C)employees as creditors stand high in priority in a Chapter 11 bankruptcy filing

Question

Quizplus · Accepted Answer

Employees are typically considered unsecured creditors unless they have some form of collateral backing their claims. However, in bankruptcy proceedings, certain employee claims may be given priority, but this does not make them secured creditors.

Regarding the Bankruptcy Filing of an Employer, Which of the Following