Caught in bankrupcy

[Pat Steet]

I purchased an entertainment center in Austin, Texas in Dec. 2000, which I put on my charge card in the amount of $2200.00. When the entertainment center was deliverd the delivery men refused to take the center out of the crates which was part of the delivery service charge. They also refused to take the center back. When I was able to remove the center out of the crates it was horribly damaged, and looked like it had fallen off the truck, the entire right side was dented and not worth any amount of money. I called the retailer several times regarding the damages and no one would speak to me. I then contacted my charge card company who put in a dispute with the retailers on my behalf. I just received a letter from my card company, which said I had to pay for the center because the retailer is protected now under bankrupcy laws. Is there any way I can become a creditor in the court preceedings to get my $2200.00 back? Also how do I find out which courts are handling the bankrupcy when all phone numbers are no longer in order and web sites are down?
Are consumers protected at all in this case?

 

[JETX]

Since the merchant has apparently filed for bankruptcy protection (you can contact your local or regional bankruptcy court for information), it appears unlikely that you will be able to get any recovery from them. Your next step against the merchant will be partly determined by what type of bankruptcy they have petitioned for. If a Chapter 7 (Liquidation), there is probably little chance that you will recover anything. If a Chapter 13 (Reorganization), you might be able to recoup a percentage (but seldom all) of your loss. In either case, you will need to contact the Bankruptcy Trustee (named in the papers at Bankruptcy Court) and prove your claim to him/her so that you can be included on the claim list. You are what is known as an 'unsecured creditor', of which there are probably many, all waiting in line for SOME return of their money also.

Personally, I would try again with your credit card company. They are REQUIRED to investigate the charge and if the merchant cannot support it (likely with a bankruptcy), they MUST remove it from your statement. The Fair Credit Billing Act gives you rights that MUST be followed by the credit card issuer. One of them is the right to protection from "charges for goods and services you didn't accept or weren't delivered as agreed". To see all of your rights, click on:
http://www.ftc.gov/bcp/conline/pubs/credit/fcb.htm

Best of luck....