If my employer goes bankrupt, do I lose my status?

The H-1B is directly tied to the sponsoring employer, so a company bankruptcy is a sensitive situation. If the sponsor shuts down operations, it generally can no longer maintain the sponsorship, and the employment relationship that underlies your visa is severed, which can put your status at risk.

That said, losing a job due to bankruptcy does not necessarily mean losing your status immediately. There is often the possibility of preserving your situation if you find a new employer willing to sponsor you, who then files a new petition or an H-1B transfer within the applicable timeframe, keeping your work authorization intact.

The decisive factor here is timing: the sooner you act, the lower the risk of accumulating time out of status, which can weigh on future applications. As soon as you learn of the bankruptcy, consult a specialist and review the official USCIS guidelines to understand the steps and deadlines for your specific case.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.