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Protect yourself if a store goes bankrupt.(Trends)(Brief article)

Consumer Reports

| August 01, 2008 | COPYRIGHT 2008 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

When furniture seller Levitz closed last fall, its Web site informed customers that they might not receive ordered merchandise, that there would be no more returns or exchanges, and that some paid-for extended warranties would not be provided.

[ILLUSTRATION OMITTED]

With tough times forcing Levitz and other retailers--including Sharper Image, Linens'n Things, and Lillian Vernon--to file for bankruptcy protection, it's wise for shoppers to take precautions. Here's how:

WHEN BUYING

* Use a credit card, especially when leaving a deposit. If the business fails without providing your merchandise, you can dispute the charge with the card issuer. You might also be protected if there's a problem with the quality of goods for which you've already been billed. You generally have less recourse if you paid with cash, a check, or a debit card.

* Spend gift cards. Use cards and certificates as soon as you can, even if there's no reason to suspect the retailer is having financial ...

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