PA UC appeal pending but my employer just filed bankruptcy - how does this affect my case?
I filed an appeal with PA UC about 3 weeks ago after being denied benefits (employer claimed misconduct but I was actually laid off). Still haven't received a hearing date, but I just found out yesterday that my former employer has permanently closed and filed for bankruptcy! Does anyone know what happens to my unemployment appeal now? Will it be automatically approved since they can't show up to dispute it? Or will my case just sit in limbo forever? Really worried because I've got bills piling up and no income coming in.
18 comments


Hunter Edmunds
This is actually good news for your appeal. When an employer goes bankrupt or fails to respond to UC requests, the burden of proof shifts entirely to the state. Since misconduct claims require the employer to provide evidence, and they won't be able to participate, your chances of winning just went way up. The hearing will still need to be scheduled though - the process doesn't automatically approve you. Make sure all your contact info is updated on your dashboard so you don't miss any notices.
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Jade O'Malley
•Thanks for this info! Do you know how long appeals are taking these days? Will their bankruptcy speed things up or slow it down?
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Ella Lewis
Omg the EXACT same thing happened to me last year!!! My employer closed down right after I filed my appeal and I was freaking out. The hearing still happened but nobody showed up from the company side so I basically just had to explain my side and answer the referee's questions. I ended up getting approved AND they gave me all my backpay from when I first applied! Just make sure you show up to the hearing with any documentation you have about being laid off. They'll send you a hearing notice in the mail and it's usually a phone hearing.
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Andrew Pinnock
•this is why its so stupid how companies can just say 'misconduct' with no proof and we get denied right away smh
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Brianna Schmidt
their bankruptcy doesnt mean automatic approval. my cousin went thru this and still had to wait 2 months for hearing. system is broken.
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Jade O'Malley
•2 months?! I can't wait that long, I'm already behind on rent. Do you know if your cousin did anything to speed up the process?
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Alexis Renard
While it's true that the bankruptcy may improve your chances, the hearing timeline won't necessarily change. Appeals are taking 6-8 weeks in PA right now, sometimes longer depending on your county. One important thing to note: you should continue filing your weekly claims during this waiting period, even though you're not receiving payments. If you win your appeal, you'll only get backpay for weeks you properly certified. Also, make sure you're doing your work search activities and documenting them each week (minimum of 2 work search activities and 1 job application weekly). The referee will ask about this at the hearing.
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Jade O'Malley
•Thanks! I've been filing weekly claims but I wasn't sure about the work search since my claim is in appeal status. I'll make sure to start documenting everything.
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Camila Jordan
If you're struggling to get information about your appeal status, I highly recommend using Claimyr to get through to PA UC. I was stuck waiting for 2 months with no updates on my appeal, but after using Claimyr I got to speak with an actual claims examiner who was able to see notes on my file and give me a timeframe. It's way better than waiting on hold for hours or getting busy signals. Their video explains how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 and you can find them at claimyr.com. Seriously made a huge difference in my stress levels just knowing what was happening with my case!
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Ella Lewis
•I second this! Used it for my appeal issues last year too and actually found out my hearing notice had been sent to my old address. Saved me from missing my hearing date.
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Tyler Lefleur
I went through an appeal where my former employer CLOSED DOWN during the process!!!! Here's what happened to me - they still scheduled the hearing and the referee explained that the burden of proof for misconduct is on the employer. When they didn't show up, I just had to tell my side of the story and answer a few questions. Since there was no one to contradict my version of events, I won my appeal. But heres the BAD news - the company still had 15 days to appeal THAT decision, and even though they were closed, somehow their corporate headquarters or lawyer or SOMEONE filed another appeal!!! So I had to go through ANOTHER hearing at the Board of Review level. Total nightmare that took almost 4 months to resolve. Just warning you that bankruptcies can get complicated when parent companies get involved.
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Jade O'Malley
•Wow, I didn't even think about that possibility. My employer was a small local company with no parent company, so hopefully that won't happen to me. 4 months is crazy though!
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Andrew Pinnock
nobody from UC ever answers the phone when u call them, total joke
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Camila Jordan
•That's why I recommended Claimyr above. It's the only reliable way I've found to actually get through to a real person.
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Hunter Edmunds
Quick update on timing - I've been hearing from other claimants that PA UC is dealing with a bigger backlog than usual right now. Appeals that used to take 4-6 weeks are now taking 8-10 weeks in many cases. Calling probably won't speed things up, but if you're experiencing financial hardship, you can note that on your appeal and request expedited processing. No guarantees, but sometimes it helps. Also, while waiting for your appeal, check if you might qualify for other assistance programs like SNAP benefits or emergency rental assistance through your county.
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Jade O'Malley
•Thank you for mentioning this. I'll look into those other programs right away. Do you know if winning my appeal would affect eligibility for other benefits?
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Alexis Renard
To answer your latest question - receiving unemployment backpay could potentially affect your eligibility for income-based assistance programs, but it depends on the specific program rules. Many assistance programs understand that UC benefits are temporary, so they may prorate the impact. Regarding your original question about the bankruptcy - one more important thing to know is that you should gather any documentation showing you were laid off rather than fired for misconduct. Things like: - Any written layoff notice - Email communications about workforce reduction - Pay stubs showing consistent work until termination - Statements from coworkers (if possible) - Any positive performance reviews Even though the employer won't likely show up, having this documentation will strengthen your case tremendously.
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Jade O'Malley
•This is really helpful! I do have an email from my manager mentioning "staff reductions" and my last two performance reviews were positive. I'll make sure to have those ready for the hearing.
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