In today’s bad economy, not only are individuals faced with bad debts, companies are, too. As a result, many companies have filed for bankruptcy protection in order to remain in business. As many businesses file bankruptcy, a lot of consumers also end up with the possibility of losing money on a lot of things such as gift cards, prepaid purchases and so on.
Below are some of the tips that could help you avoid problems of losing money when a business is filed with bankruptcy:
1. When a business/company is about to file for bankruptcy, do not pre-pay for the products or services that they offer as far as possible. If a you pre-pay for a product or services of a business or company in financial difficulties, you may not be able to get what was promised to you once the business or company files for bankruptcy. This is because once a bankruptcy petition is filed, your money and the product/service you purchased will become part of the company’s assets.
2. As far as possible, try to avoid purchasing gift cards from companies/businesses that are nearing bankruptcy as well. In the past, it was considered safe to purchase gift cards from large retailers offering such cards. However, after the incident of big companies filing for bankruptcy (such as the Shaper Image and Circuit City), it is now recommended that you use your gift cards right away after purchasing to avoid losing money on that gift card especially if the gift card’s company is nearing bankruptcy.
3. It is okay to choose companies that offer warranties to their products even if they file for bankruptcy but you have to demand they honor their warranty even after bankruptcy has been filed. Bankruptcy does not absolve the company from honoring their warranty to their products. So making sure the warranty is valid is the first thing you have to make sure of especially when buying big/expensive purchases such as cars, 3D flat screen tv, etc.
Keep these tips in mind so that your money won’t be wasted. It is important to be aware of this matters to prevent having to deal with these kinds of issues.
If you are considering filing for bankruptcy for your business (or yourself personally), call us at (813) 200 4133 for a free consultation.