Just got layoff letter from bankrupt company - will NY unemployment approve my claim?
My company just announced bankruptcy TODAY and they're giving everyone a letter for unemployment claims. I'm freaking out because I've never been through this before. What are the chances my NY unemployment claim will actually get approved? Does having this letter from the company make it automatic or can they still deny me? I have no savings and rent is due in 2 weeks. Has anyone been through a mass layoff situation like this?
18 comments
AstroAce
You're in a pretty straightforward situation that should lead to approval. When a company provides a layoff letter specifically for unemployment purposes, your chances of approval are very high. Make sure you file your claim immediately - don't wait! NY unemployment takes about 2-3 weeks to process initial claims even when approved. The letter from your employer basically confirms you lost your job through no fault of your own, which is the main qualification for unemployment benefits. When you file, have your employer's info ready, including their NYS Employer Registration Number if it's on the letter they gave you.
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Ethan Clark
•Thank you so much! That makes me feel a bit better. The letter does have some kind of registration number on it, so I'll make sure to include that. Do you know if there's a way to get the process expedited since it's a mass layoff situation?
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Yuki Kobayashi
OMG what if they DENY you???? I got laid off last year and kept getting these weird messages saying my claim needed "additional review" and I almost had a panic attack every time I checked my account! And then they asked for all this documentation about my previous jobs and I had to upload like 10 different things and one of them was the wrong format and AHHH it was so stressful! Do you have any other income sources you can tap while waiting?? It took 5 weeks for my first payment!!
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Carmen Vega
•This kind of delay usually happens when there's missing information or discrepancies in your work history. With a company bankruptcy and formal layoff letter, the process is typically much smoother since the employer has already acknowledged the separation reason. Remember that benefits are backdated to when you first filed, so even if there's a processing delay, you'll still receive all payments you're entitled to.
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Carmen Vega
Mass bankruptcy layoffs are actually one of the clearest cases for unemployment approval. The burden of proof is essentially already handled by the employer's documentation. Just make sure when you file your claim that you select "Laid off due to company closing/bankruptcy" as your reason for separation. Upload a copy of your layoff letter if the system allows it, or have it ready if they request additional documentation. And yes, as mentioned above, file IMMEDIATELY - every day matters when calculating your benefit year and weekly payment amounts.
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Andre Rousseau
•ya this is right i got laid off when my restaurant went under last summer and got approved in like 3 days, super easy just had to do the online interview thing and answer the questions right
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Zoe Stavros
I was in a similar situation back in January when my company suddenly folded. Despite having the layoff letter, I couldn't get through to an actual person at NYSDOL for THREE WEEKS to resolve a simple issue with my claim. It was beyond frustrating. I finally discovered Claimyr.com which got me connected to an agent in under an hour! You can see how it works in their video demo: https://youtu.be/Rdqa1gKtxuE - saved me so much stress during an already difficult time. My claim was approved right after speaking with the agent.
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Ethan Clark
•Thank you for this tip! I've been trying to call them all morning with no luck. I'll check out that website if I can't get through by tomorrow. Did you have to explain anything specific to the agent about your situation?
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Jamal Harris
THE WHOLE SYSTEM IS RIGGED!!! They make it IMPOSSIBLE to get benefits even when you clearly qualify!! I had a letter from my employer too and they STILL denied me saying I "voluntarily quit" which was a COMPLETE LIE! Then you can't get anyone on the phone EVER and the appeal process takes MONTHS while your bills pile up! Good luck but don't count on the system working like it should!!
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AstroAce
•It sounds like you had a situation where your employer contested your claim or reported something different to NYSDOL than what was in your letter. That's relatively rare in bankruptcy cases since the employer has no financial incentive to fight the claim (their UI account is essentially closed). For the original poster, with a bankruptcy situation and official documentation, the process should be much smoother than what you experienced.
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GalaxyGlider
I worked at a place that went bankrupt in 2025 and everyone got approved pretty quick. Just make sure you have your final paystub and the letter they gave you. And don't forget to do your weekly certifications even if your initial claim is still pending! That's where a lot of people mess up - they wait for approval before certifying weekly, but you need to certify every week right from the start.
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Ethan Clark
•Thanks for the advice about weekly certifications! I wouldn't have known to do that while waiting for approval. Do I just log into the NY unemployment website to do that?
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Andre Rousseau
ur good my dude, bankruptcy claims are easy. just don't say anything stupid on ur application lol. like don't say u quit or got fired for breaking rules. just put layoff due to closing and ur golden. took me like 10 min to apply when my job closed
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Yuki Kobayashi
•This is actually super important advice!! The questions are kind of tricky and if you answer them wrong you can accidentally disqualify yourself even when you should qualify! Be really careful with the questions about why you're not working anymore!
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AstroAce
One additional piece of advice: New York requires you to register with NY JobZone and create an active job search plan within 7 days of filing your unemployment claim. Many people miss this step and it can delay your benefits. Since you're part of a mass layoff, you should also check if your company is covered under the WARN Act, which might entitle you to additional benefits or services.
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Ethan Clark
•I hadn't heard about the JobZone requirement! Thank you so much for mentioning it. I'll make sure to register right after filing my claim.
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Carmen Vega
Based on the responses here, it's clear your situation should result in approval. To summarize the key steps: 1. File immediately 2. Select the correct reason for separation (layoff due to business closing) 3. Upload/provide the employer letter when prompted 4. Begin weekly certifications right away 5. Register with NY JobZone within 7 days 6. If you encounter any issues reaching NYSDOL, consider using a service to get through Most bankruptcy-related claims are processed within 2-3 weeks, so you should receive your first payment before your rent is due if you file immediately.
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Ethan Clark
•Thank you so much for laying this out so clearly! I'm going to start the application process right now. This community has been incredibly helpful during such a stressful time.
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