By Martin J. Jaron Jr, Holland & Knight LLP 

It's no secret that we are in the midst of the worst economic downturn since the Great Depression. The economy is stagnant, the stock market is unstable, and businesses are downsizing, cutting back, jettisoning entire divisions or subsidiaries, or in some cases closing down completely. At the end of the line, bankruptcy court is often a necessary choice for reorganization (Chapter 11) or liquidation (Chapter 7).

Employee layoffs, often mass layoffs of hundreds of employees at one time, are common, and the daily unemployment statistics paint a stark and depressing picture. As of October, 2009, the U.S. Department of Labor calculated the unemployment rate at 10.2%, surpassing 10% for the first time since 1983. In troubled times like these, orderly processes in a business often break down or are cast aside when the focus turns to survival.

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