What happens when a firm goes bust?

gretzky

Registered Users (C)
Hypothetical scenario:

1. Employed under H1B with L/C filed
2. The company goes out of business BUT the legal entity remains
3. The company does not officially lay you off AND continues to pay you a nominal salary to show that you are on the payroll; the company does this until you find a new job
4. This nominal salary is significantly less than what was indicated in the H1B and L/C petition
5. You find a new job in six months after the company goes out of business

Questions:
1. Are you out of status during the six months when you are looking for a job?
2. If yes, and you can't find a job immediately after the company goes bust, what options exist besides going back to your home country?

Many thanks.
 
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