Can you get your ticket money back from bankrupt airlines...?

Question

I heard that if you pay by cash, check or money order that you are at the mercy of the bankruptcy judge.

But, I also heard that if you pay by credit card you can file a complaint with the credit card company and get your money back.

Something to think about.

Answer 1

You are correct. If you paid by credit card, you can apply for a refund from the card issuer. If you paid by cash or check, you are an unsecured creditor. That means that you are last in line to get paid after the secured creditors. If there is any money left after the secured creditors and lawyers are paid off, then you may get something back - typically a few cents on the dollar.

It's always best to pay by credit card because you get that extra protection.