WHEN A STORE OWES YOU MONEY OR MERCHANDISE
If you paid for merchandise or services you haven’t received, talk to the store’s owner about receiving a refund or your order. Many businesses will try to make good on the deal. Unfortunately, we’ve also received complaints from consumers who never received their custom-designed furniture, as well as couples who were denied refunds when the venue they reserved for their wedding declared bankruptcy before they exchanged their vows.
Tip: Prevent problems by paying small deposits. When you order merchandise that will be delivered in the future, such as furniture or a bridal gown, a store usually asks for a deposit. Always ask the retailer the minimum deposit it will accept. Pay with a credit card because laws provide you with safeguards if the business fails to deliver the merchandise.
If you paid for your merchandise by credit card, you can request a refund of your deposit from the credit card issuer. The procedures to request a "chargeback" are explained on the back of your credit card statement.
If the business has filed for bankruptcy, you can file a claim with the U.S. Bankruptcy Court where the business filed to try to recover what you’re owed.
Bankruptcy law spells out who gets paid first from any available assets. Administrative costs for the bankruptcy case are first in line. Next are "secured creditors" whose claims are secured by the business' property or other assets.
Farther down in priority are "unsecured creditors;” as a consumer creditor who has paid for goods never received, you're ordinarily in that category. You may receive all, some or none of your deposit. Consumers should weigh the potential benefits of a successful or partially successful claim against the inconvenience and expense of pursuing the claim.
You usually have only 90 days from the bankruptcy filing date to file a claim. Contact the clerk of the bankruptcy court to obtain a standard "proof of claim" form. You can also download one at
http://www.uscourts.gov/bkforms. You’ll need to know the identifying name and number of the bankruptcy case and provide copies of receipts and records.
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