MAGNOLIA

CLIPPING SERVICE
(601) 856-0911 I (205) 758-8610
JACKSON ADVOCA TE

JACKSON, MS

Circulalion = 24000
WEEKLY
08/06/2009

11111111111111111111 1111111111 1111111

What to do ab out

bankrupt
'to
retailers

JAN - As a result of the de­

clining economy, an increas ing
number of retail ers are closing
their doors and leaving shop­
pers confused and concern ed.
"Shoppers are le1i wondering
what will happen to goods they
haven 't recei ved, gift cards, and
outstanding warranties," said
Bill Moak, President/CEO of
the Better Business Bureau
(BBB) Serving ' "Miss issippi .
"The following is some advice
that we offer 10 consumers if a
retailer files for Chapter 7
bankruptcy."
• G oods or services due,
Unfort unately, under bank­
ruptcy laws, consumers are at
the back of th e lin e regarding
benefits . N ormally, any gain s
from the sale of company assets
go first to paying back secured
creditors and employee wages.
Customers who paid with credit
card s, however, may be able to
di spute the charge with the
cred it card company and get
their money back. Those pay­
ing by debit card or check will
have to file a claim with the
bankruptcy court.
• Warranties. Validity of
outstanding warranti es is differ­
ent in each case. If a manufac-
turer goes out of business, coo­
sumers may be able to rely on
warranties provided by retail­
ers. Many extended warranties
and service plans are provided
and administered by third par­
ties, and they typically are not
affected by retailers going out
of business.
• Gift cards. Under Chapter
7 bankruptcy, the consumer
must file a claim and generally
will receive part of the value of
the card back. In Chapter 11 sit­
uations, the courts make deci­
sions on whether the business
must honor gift cards or gift
certificates.
" Sometimes retailers have
wooed new customers by ac­
cepting a bankrupt competitor's
gift cards Our advice in these
cases is for the con sumer to re­
deem these cards as soon as
possible, " said Moak.