Q: How can I protect self from a store going bankrupt if they are storing an expensive item for me?
I am purchasing an expensive large item, but it will take 4-8 weeks for the specialized national movers to pick it up. They want full payment now, what can I do to protect myself now, if the dealer goes bankrupt before the movers come?
A:
You may consider paying with a credit card and dispute the charges in the event that happens. This may tie up your credit. You might also negotiate timing of the payment. Another option is to perhaps place the funds in escrow pending pick up. You have to discuss with the store to see what they will agree to do. For example, with a major furniture retailer, they generally do not charge the credit card until the item is shipped - but this is a private business policy so you'll have to negotiate.
Keep detailed records, copies of payment etc. If they do file bankruptcy, you'd assert a claim in the bankruptcy case (but you don't want to rely on this). You might try to reach out to Debtor's counsel (if chapter 11 filed) or the trustee (if chapter 7 filed) requesting the pick up, but who knows if you'll be able to get your item.
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