RoomStore customers could see refunds this year

Posted at 6:24 PM, Feb 26, 2016
and last updated 2016-02-26 20:36:19-05

Bankruptcy is never fun. Even less when its your money hanging the balance.

The RoomStore, filed for Chapter 11 bankruptcy protection in December 2015.

And customers who paid deposits or bought warranties, let me know they are anxious about what that means for their money.

Like viewer Larae who says she bought a sofa in in December that was delivered damaged.

When she contacted the store she says "they told me the replacement pieces would be delivered next week. They were not...I just do not understand why they cannot make good."

The short answer is, it's complicated.

Because once a business files bankruptcy, you are turned from a customer into a creditor.

That means you're caught up in the bankruptcy court case, and may be entitled to file a claim for payment.

Most customers who are owed money were automatically entered as claimants to the court--some may have even received paperwork confirming this already.

The good news: I'm told customers who put money on furniture before the bankruptcy filing are considered priority claims.

Meaning you are first on the list to get paid back in full once the case is settled.

The bad news: that's not expected to happen until end of this year.

Now, if you need a repair covered under warranty, things are different.

While the case is open, RoomStore says it can not process any warranty claims.

Instead they suggest to contact the manufacturer directly and see if they will honor their warranty.

You also opt to wait until the case is complete to try to use the warranty.

But if you end up paying for the repair yourself, why not submit that receipt as a claim because somebody owes you some money.

Find out how to file your claim here.

Need my help? Call the Assistance League of Phoenix volunteers at 1-855-323-1515. You can also send me an email, or a video email where you attach a video explaining the problem.

You can reach me on Twitter or "like" the Let Joe Know Facebook page and tell me about it there.

AND WE NEED YOUR HELP!  If you want to be a volunteer and help other consumers, let me know.