Does a company go bankrupt if its stock price goes to zero?
The cause-and-effect relationship is almost always the other way around: a company's stock price falls towards zero because investors are worried that the company will go bankrupt.Even when companies actually file for bankruptcy, the stock may not necessarily go all the way down to zero. For example, a few months ago an offshore driller called Paragon Offshore filed for bankruptcy and the stock price actually more than doubled because the terms of the bankruptcy were more favorable to equityholders than had been expected.Sometimes a company's falling stock price may hasten or contribute to its downfall. This is especially true for companies whose business models relied heavily on the availability of equity or other [1] financing to fund an underlying business that was fundamentally loss-making. SunEdison was an example of this. When the MLP market dried up and its stock price plummeted, SUNE's viability was put in question. Coupled with a heavy debt load, the stock price has crashed spiraled in recent months.Notes:[1] MLP financing in the case of SunEdison.
Can I collect unemployment if my company goes bankrupt?
If you quit you cannot get unemployment in most instances. If they go bankrupt and fire everyone, then you can. There are some circumstances where a company files for bankruptcy and people don't get fired - bankruptcy just puts a leash on the creditors until new financing is found, or the business closes. Unemployment is paid by a state insurance fund so if you are out of a job that isn't your fault (e.g. quitting) you will get it. Technically, you are supposed to be paid for final hours worked within a week of leaving a job for any reason, so if you do leave, make sure that is in hand. Normally a bankruptcy proceeding allows employees to get paid for their last hours. In the meantime though, use up sick or vacation time - you might not get those paid.
How much do bankruptcies cost taxpayers?
The government does not pay the debts of bankruptcy debtors. The lenders don't get paid at all. This is why lenders charge higher interest rates to riskier borrowers - there is a chance they won't be paid. Generally, though, they make a huge profit even though some of their loans don't get paid back, because the interest rates are so high on the ones that do get paid. Lenders commonly complain how bankruptcies hurt their business, but they keep lending to people that already have huge debt and low income. Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).