What happens when your big-ticket home upgrade turns into a silent scam?


 That’s the nightmare Lee, a homeowner in Georgia, recently found himself facing. After spending thousands on new windows for his entire house, he waited. And waited. A month later, with no installation and no communication, he discovered the window company had filed for bankruptcy.

 

Unfortunately, Lee’s story isn’t as rare as it should be—and if you’re investing in home improvements, this is a cautionary tale worth heeding.

When a Company Folds and Your Money’s Gone

Imagine writing a hefty check—or charging a few grand to your credit card—for a home upgrade. You’ve signed the paperwork. You’re envisioning your energy-efficient, noise-reducing new windows. And then…nothing.

 

When a company abruptly shuts its doors, consumers are often left with limited legal or financial recourse—especially if they’ve already paid for undelivered goods or services. According to the Federal Trade Commission, Americans reported losing nearly $10 billion to fraud in 2023 alone. While not all of that stems from business closures, sudden bankruptcies and deceptive business practices remain a persistent threat, often leaving consumers at the back of the line when it comes to recovering funds.

 

So what can you actually do?

Step One: Act Fast with Your Credit Card Company

If you paid with a credit card, you have a potential escape hatch:  File a chargeback immediately.


 Credit card companies offer consumer protections for exactly these kinds of situations. But time is critical—most issuers have a 60-day window from the date of the charge to dispute a transaction. If you wait too long, your opportunity may be gone.

 

You’ll likely need documentation: contracts, receipts, any emails or texts from the company, and proof that the goods or services weren’t delivered.

 

          Tip: Even if you suspect a business is going under, don’t wait. File the chargeback as soon as you feel something is off.

Step Two: File a Claim with the Bankruptcy Court

If your credit card company can’t help—or if you paid with a check, cash, or debit—your next step is to file a claim with the bankruptcy court handling the company’s case.

 

In these cases, you become an “unsecured creditor.” Translation: you’ll join a long line of people the company owes money to, and there’s no guarantee you’ll be paid back at all.

 

The court’s role is to divide any remaining assets among creditors. Often, consumers get pennies on the dollar—or nothing at all.

For more on how that works, the U.S. Courts’ bankruptcy basics page is a solid resource.

Why This Happens—and How to Avoid It

The home services industry is especially vulnerable to this kind of consumer loss. Some companies overpromise and overextend. Others deliberately take deposits they know they won’t honor. And in rare cases, economic shifts or lawsuits force a business to close overnight.

 

So what can you do to protect yourself before signing a contract?

  • Vet the company thoroughly. A good-looking website isn’t enough.
  • Avoid large upfront payments. A reputable contractor should never ask for full payment before work begins.
  • Check licensing and complaints. Look up their record with the Better Business Bureau, your state licensing board, and review sites—but be wary of fake reviews.

Dale Cardwell built his entire platform to help people avoid exactly this kind of nightmare. He created TrustDALE to provide consumers a resource of trustworthy companies who have agreed to abide by a $10,000 Make It Right Guarantee.

Take Control Before Trouble Starts

If you’re planning any kind of home improvement project in 2025—whether it’s windows, roofing, HVAC, or remodeling—ask yourself: Would I be protected if this company suddenly shut down tomorrow?

 

And if the answer is no, reconsider who you’re working with.

 

Want peace of mind for your next project?


 Search for a TrustDALE certified partner at TrustDALE.com. It’s free, easy, and you’ll only find companies that have been thoroughly vetted for integrity, accountability, and financial health.

 

Because in today’s world, who you trust matters more than ever.

 

Have you ever been burned by a business that suddenly shut down? How did you handle it? Let us know in the comments or reach out with your own “Ask Dale” question—your experience might help someone else avoid the same trap.