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

question 23

Multiple Choice

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

---

Definitions:

Checking Account

A bank account that allows the holder to write checks, use electronic debit, and make deposits, meant for frequent transactions.

Improperly Dishonors

Refers to the situation where a financial institution wrongfully refuses to accept a valid check or draft presented for payment.

Drawer

In banking, the person who writes or creates a check or draft instructing the bank to pay the stated amount to a third party.

Recourse

The legal right to demand a penalty, compensation, or satisfaction for a harm or loss.