I purchased appliances from sears but have not yet received them. If they declare bankruptcy before then, I assume my only recourse is a credit card dispute, but if there is no money in the account i'm told this would not be able to happen. What is likely to happen and what can I do at this point to protect myself? Cancelling is an option but they often take weeks to complete that process and often don't even issue refunds when they said they will (which could end up backfiring rather than filing a dispute sooner). Bankruptcy is expected to occur in the next few days.
If they do not deliver the goods, a credit card dispute is your best option. Otherwise, you may have a claim in the bankruptcy estate.
This response is not intended as legal advice. You may need to consult your own attorney to obtain a more specific answer.
Sears is expected to be filing a Chapter 11 reorganization. Talks are under way to arrange debtor-in-possession financing. The company is not liquidating their assets at this time. You should be fine in receiving your appliances.
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If you submit a dispute to your credit card issuer that you paid for mdse but have not yet received it, you should be ok. It you used a debit card, different result.
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