Re: Careful out there when shopping....
Perhaps. I'm not well-versed in Bankruptcy Laws but I bet some here on the forum are.
Credit card companies can do chargebacks which pull the money out of the merchant accounts but if there is no money to actually get - they can't pull it out if none exists. And any merchant who is playing a shell game with his customers is sure to have multiple bank accounts and that one the credit card funds go into is kept dry or nearly so. So while you have some protection in that manner, its not strong. Some enhanced credit cards (Platinums, etc) may have their own protection program and that's what you'd really want to use on a deposit if all possible. That's buried in the fine prints of some cards but probably worth looking into.
When a store goes bankrupt, you stand in line with the other creditors. You will be behind the banks, the IRS and state taxing authorities, landlords and perhaps suppliers. You may eventually get your money back, depending on how much is generated from the liquidation and how the courts divide up the settlement. It might take some time and you may only get pennies back on the dollar. Each situation is unique, of course. Others here will probably know how that works better than I as I have NO experience with Bankruptcy and never intend to!
Duane Collie
Straight answers from thirty-six years in the business.
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