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In these tough economic times, struggling airlines may declare bankruptcy while continuing flight operations. TravelSense offers these tips to consumers holding tickets on any airline that has declared Chapter 11 bankruptcy:
Use a credit card. When selecting an airline rumored to be in financial trouble, you should pay by credit card. Under the Fair Credit Billing Act, credit card customers have the right to refuse paying for charges for services not rendered. Details of the Fair Credit Billing Act can be found at the Federal Trade Commission's Web site.
Consider insurance. Some travel insurance policies may even include supplier default protection. Consult with your insurance provider for details.
File a claim. If all else fails and you are unable to take advantage of the Fair Credit Billing Act, you should file a claim with the bankruptcy court. The bankruptcy court usually provides filing instructions, including claim forms, within months after a bankruptcy is filed.
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