Your options and timeline when the company sponsoring your H-1B visa ceases operations.
Company bankruptcy or shutdown is one of the most stressful scenarios an H-1B worker can face. Unlike a standard layoff where the company continues operating and may provide some transition support, a bankruptcy can mean sudden loss of employment, payroll disruptions, and an HR/legal team that may be unable to help with immigration matters. Understanding your rights and acting quickly is essential.
| Company | Total H-1B Filings |
|---|---|
| Amazon | 55,150 |
| Microsoft | 34,626 |
| 33,416 | |
| Infosys | 32,840 |
| Tata Consultancy Services | 28,950 |
| Cognizant | 26,700 |
| Deloitte | 18,200 |
| Apple | 15,800 |
| Meta | 14,900 |
| JPMorgan Chase | 12,400 |
H-1B status is employer-specific. When your sponsoring company ceases operations — whether through Chapter 7 liquidation, Chapter 11 reorganization, or simple shutdown — your H-1B authorization to work for that employer ends. Chapter 11 bankruptcy does not necessarily mean immediate job loss (the company may continue operating during restructuring), but Chapter 7 liquidation typically means immediate cessation of operations and employment.
The 60-day grace period applies from the date your employment actually ends, not from the date bankruptcy is filed. This distinction matters: in Chapter 11 cases, you may continue working during the restructuring process. In Chapter 7 cases, employment typically ends immediately or within days.
Critically, bankrupt companies are legally required to pay for the H-1B worker's reasonable transportation costs back to their home country if the worker is dismissed. In practice, this obligation often goes unfulfilled in bankruptcy situations, which is why having an emergency fund is important.
A: Immediately. The 60-day grace period starts when your employment ends, and finding a new sponsor, going through interviews, and filing a new H-1B petition takes time. Start reaching out to your network and applying to jobs the moment you learn of potential bankruptcy or shutdown.
Q: Can I change to B-1/B-2 visitor status if I cannot find a new sponsor?
A: Yes, filing a change of status to B-1/B-2 is an option if you cannot find a new H-1B sponsor within the 60-day grace period. B-1/B-2 status does not allow you to work, but it can provide additional time in the U.S. while you pursue other options. File the change of status application before the 60-day grace period expires.
Use Wisa to find companies with strong H-1B filing histories and high sponsor scores — indicators of long-term sponsorship commitment. Search verified H-1B sponsors on Wisa →
Search thousands of verified H-1B sponsors by company, industry, and location.
Search H-1B Sponsors on Wisa →Your H-1B status is employer-specific and effectively ends when your employment ceases. You have a 60-day grace period from the date employment ends to find a new H-1B sponsor, change to another visa status (like B-1/B-2), or depart the United States. In Chapter 11 bankruptcy, you may continue working if the company operates during restructuring.
The 60-day grace period starts when your employment actually ends, not when bankruptcy is filed. In Chapter 7 liquidation, employment typically ends immediately. In Chapter 11 restructuring, the company may continue operating and paying employees during proceedings, so your employment (and H-1B status) may continue.
Legally, yes. Under immigration law, the H-1B employer is required to pay reasonable costs of return transportation to the worker's home country if the worker is dismissed before the end of the authorized period. However, in bankruptcy situations, this obligation may be difficult to enforce as the company may lack funds. An emergency savings fund is strongly recommended.
Maintain an emergency fund covering at least 3 months of expenses. Keep your resume updated and maintain professional relationships with potential alternative employers. Monitor your company's financial health. Use Wisa to identify backup companies with strong H-1B filing histories in your field. Consider companies with high sponsor scores as they tend to be more financially stable.