2 ms·
When a business runs out of money, it's out of money, so sure, a bankrupt company can be unable to provide product or refunds. Customers are considered unsecure
by Johnny555 9y ago
When a business runs out of money, it's out of money, so sure, a bankrupt company can be unable to provide product or refunds. Customers are considered unsecured creditors, so will likely not get anything in the bankruptcy.
You can try to pierce the corporate veil and get money from shareholders and/or owners, but without gross negligence or outright fraud, that's going to be hard to do (with high legal expenses)
- toomuchtodo 9y agoChargebacks are the least painful method to being made whole when a merchant defaults. Always pay with a credit card when possible (but do not carry a balance!).
- lemoncucumber 9y agoI know that in most typical cases merchants eat the cost of chargebacks, but in this case I guess the credit card issuer just becomes yet another creditor? (and presumably eats the cost)