BBB Advice on What to do When a Business Shuts its Doors
Better Business Bureau serving Eastern North Carolina offers advice for consumers regarding steps they can take to recoup their losses if a company closes its doors.
Contact your credit card company. If you paid via credit card, contact your credit card company to dispute the charges. Under federal law, you have 60 days after the charge first appears on the bill to do so.
File a complaint with BBB. If the company has not closed completely, BBB will help you try to resolve the issue.
If the company files for Chapter 7 bankruptcy, you have 90 days to file a claim with the bankruptcy court. Forms and more information are available at uscourts.gov.
If the company files for Chapter 11 bankruptcy, it means they intend to stay in business and need time to reorganize. During this time, they typically honor contracts and gift cards, and try to fulfill delivery of goods and services already purchased.
File in small claims court. If the company owner does not file for bankruptcy, consumers can file in small claims court.
For more information, visit bbb.org.
About BBB serving Eastern North Carolina
Better Business Bureau serving Eastern North Carolina is a 501(c)(6) not-for-profit corporation serving 33 counties in eastern North Carolina. The organization is funded primarily by BBB Accredited Business fees from more than 3,000 local businesses and professional firms. BBB promotes integrity, consumer confidence and business ethics through business self-regulation in the local marketplace. Services provided by BBB include reports on companies and charitable organizations, general monitoring of advertising in the marketplace, consumer/business education programs and dispute resolution services. All services are provided at no cost to the public, with the occasional exception of mediation and arbitration. Visit bbb.org.