Advantages

• No minimum or maximum debt is required.
• Any unpaid balances are discharged after you assets have been liquidated.
• You can keep any wages you earn or property, except for inheritances, after the bankruptcy filing date.
• Most cases are completed in 4-6 months.
• Creditors can no longer contact you once a petition is filed. 
• Foreclosure can be stopped while going through the process to give the debtor time to get their finances in order.
• Prior to filing the debtor must speak with an approved credit counselor.  This action should help to get finances in order to avoid future financial problems. 

Disadvantages

• Your non-exempt property is sold.
• Not all debts are discharged.
• Co-signers can still be held liable for the debts.
• Stopping a Chapter 7 is difficult.
• Will damage your credit rating and bankruptcy is public record.  Chapter 7 will be reported for 10 years on your credit report.
• Any liens on a property cannot be included in the bankruptcy.
• Difficult to qualify for.
• Filer is responsible for all costs associated with bankruptcy.
• Certain professions and employers will not hire an employee who has filed for bankruptcy.

Debts that are NOT discharged:

• Child support
• Alimony
• Student loans
• Income taxes (that are less than 3 years past due)
• DUI judgments
• Debts incurred by fraudulent means.

It is no secret that many people have contemplated bankruptcy due to the financial strain they are facing.  A large percentage of people make financial New Year’s resolutions and bankruptcy is an option that they have pondered.  Consumers assume bankruptcy is their way out of the financial crisis in their household.    This may have been the answer prior to 2005; however bankruptcy changed drastically on October 17, 2005.  The government lobbied unsuccessfully for 8 years and 3 failed attempts to pass a bankruptcy reform.  They succeeded on April 20, 2005 when President Bush signed The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 into law.  The law went into effect on October 17, 2005.  The reform was the biggest change to bankruptcy in decades.  There are many significant changes listed below that anyone contemplating bankruptcy should be aware of.

Key Changes to Bankruptcy

• A financial means test that will be administered to individuals who wish to file Chapter 7.  It will make it more difficult for debtors with above their median state income to file a liquidation bankruptcy under Chapter 7.
• A requirement that all debtors must receive a briefing from an approved credit counseling agency at least six months before they can file.
• A provision making it easier for a court to dismiss a bankruptcy case completely or to convert a Chapter 7 case to a Chapter 13 case.
• Tax returns from the last tax year are required.  If the filer didn’t pay taxes they are ineligible to file.
• Prior to any debt debts being discharged the debtor must participate in a government-approved financial management program.
• Some of the “automatic stay” protections have been eliminated.  Consult with an attorney for more detailed information.
• If you purchased your vehicle less than two and half years ago you will be responsible to pay the full amount of the lien off in Chapter 13.  On the other hand, if you bought your car more than two and half years off you are only responsible to pay the fair market value of the vehicle.
• Any past due obligation payment (child support, alimony, etc.) are first priority and the filer must remain up to date on those payments.

This reform was finally put into effect for a couple different reasons.  Mainly, over the years there had been an increased amount of bankruptcy filings, which in turn cost consumers and creditors a lot of money.  For example in 2004, 1.1 million people filed for Chapter 7 which is also referred to as liquidation.  The process of Chapter 7 is that all non-exempt items are liquidated and paid to the creditors.  Any remaining debts are cancelled leaving the individual the opportunity to start over in the financial world.

However, since the majority of people who file for Chapter 7 don’t have that many assets several creditors or debtors take a loss on the remaining balance.  Creditors can’t afford to take a loss on millions of dollars per year, therefore they tax or increase prices on customers who are meeting their financial obligations.  In 2003 the Nilson Report stated that issuers of proprietary and credit cards “lost 18.9 billion in 2002 from consumer bankruptcy filings.”  It is estimated that a large portion of that loss was made up by taxing consumers.

The bankruptcy law also took into consideration how many loopholes were in the current system.  People and attorneys were abusing this.  There were countless cases where people filed, yet had the ability to pay back part or all of their debts.  Many of these filers should not have qualified for Chapter 7, yet they did.  Chapter 13 would have been the better alternative; however since there was no law stopping them attorneys allowed them to avoid paying back the debts by filing Chapter 7.  Chapter 13 is the route to take when someone is financially able to afford some or all of their debts.  In Chapter 13 bankruptcy the filing party is put on a repayment plan that is up to 5 years.  Most fees and interest payments will be reduced or eliminated through this bankruptcy.

In addition to the reform making it harder to qualify, it also made it very costly.  It is estimated that filers can expect to pay over 50% more since the reform was passed.  Since most people filing for bankruptcy don’t have liquid cash that proves to be a dilemma considering most, if not all, fees are due upfront.  On average a Chapter 7 Bankruptcy will cost a little under $2,000, and a Chapter 13 Bankruptcy will average $3,000.

With the new reform in place bankruptcy is proving to be a vital lifeline only to those who need it.  Bankruptcy should always be a last resort.  If you or a loved one is considering your options please contact an attorney before making any decisions.

At least, that’s what a new survey from the Allianz Life Insurance Company indicates…

Even though 2011 saw high unemployment, sagging home prices and a volatile stock market, 80 percent of Americans said that they will not focus on financial planning with their resolutions for 2012. This lack of financial focus is at the highest level in the survey’s three-year history, exceeding the 67 percent who ignored financial planning when making resolutions in both 2009 and 2010.

The reasons aren’t hard to guess…

• 35 percent said they weren’t making a New Year’s resolution about their finances because they “don’t make enough to worry about it.”
• 17 percent said it’s because they “don’t have an advisor/financial professional” to guide them.
• 23 percent said they already “have a solid financial plan.”

That simply doesn’t make sense. If you earn anything at all, you should worry about keeping more of it. If you have nobody to guide you, that’s what websites like Money Talks News are for. And no one’s financial plan is so solid they don’t need to revisit it at least annually.

But if you’re going to make a New Year’s resolution about your money, take the advice of the experts who say, “It’s not so much the resolution as it is how attainable or realistic the goal is.” (Or so said clinical psychologist Dr. John Norcross to National Public Radio.)

Here are a half-dozen very easy-to-attain financial resolutions that require only minutes of your time…

1. Resolve to order your free credit reports – but only from AnnualCreditReport.com. You’ve probably heard that you’re entitled to free credit reports from each of the big three reporting agencies (TransUnion, Experian, and Equifax). But don’t order them from anywhere else but this government-approved site – because it’s the only place they’re truly free. Those other sites you see in commercials try to sell you services you don’t need. Read Why Can’t I Get My Free Credit Report?

2. Resolve to shop generic in your grocery store. This is so easy to do, yet so hard for some folks to believe – yes, generic groceries can be a bargain without any drop-off in quality. When Money Talks News founder Stacy Johnson listed 7 Things You Should Always Buy Generic last year, he got hate mail. But he followed it up with What’s in a (Brand) Name? And we actually interviewed some grocers in More Good Reasons to Go Generic in the Grocery Store. They say Stacy was right.

3. Resolve to save money on medicine. Turns out generics are just as good at the pharmacy as the grocery. And there are other oh-so-simple ways to save. Our 10 Tips to Safely Save on Prescriptions are doctor-approved.

4. Shop online at reputable websites you never knew existed. Sure, you can save at Amazon and eBay under the right circumstances. But there are much smaller sites offering big deals to attract attention. We list them at 12 Top-Rated Shopping Sites You Never Heard Of.

5. Spend exactly five minutes searching for a new credit card. First, read How to Pick the Perfect Credit Card. Then go to our Credit Card Search Tool and look up the terms that fit your needs. Don’t fret, our search tool is unbiased – we’re not in the pocket of any credit card company.

6. Find the best deals in seconds. There are a lot of websites out there that scour the Internet for discounts and coupons on every item under the sun. But almost all of them are automated, and you can spend hours finding deals that actually apply to your life. Money Talks News’ Deals & Coupons section isn’t some robotic search – we hired a real live person to cherry-pick only the best deals. Check out Karla’s short list of stellar deals on Mondays, Wednesdays, and Fridays.

Of course, we recommend you click around our entire site whenever you have the time – because our New Year’s resolution is to find you even more ways to make you richer in 2012.

Source: Money Talks (http://s.tt/152mq)

Can a Debt Be Collected Forever?

You probably know that if you owe money, the company you owe can do lots of things to try to collect it – like damaging your credit score, sending a collection agency after you, and suing you in court. But can they come after you for the rest of your life?

Nothing lasts forever. Nearly all transgressions in our society have a limit beyond which those doing the pursuing have to give it up. It’s called the “statute of limitations.” While there are a few crimes that don’t have one – murder comes to mind – debt does. Here’s today’s question…

I have an old catalog debt that was placed into collections. This debt has finally been removed from my credit reports for a few years now from all three credit bureaus. Yet I have recently started getting letters again from a collection agency regarding this debt. To the best of my knowledge, this account is also past the Florida Statute of Limitations. What should I do about this? Is there a time frame when they can no longer harass you for payment?

If I start paying on it again, will it be placed back onto my credit report? (I don’t want it placed back on my credit report. I’ve worked hard getting my credit back in good standings.) Should I pay it off? Or should I just ignore the situation?

Any advice you can offer would help me a lot. Thank you so much.

– Tammy in Florida

Here’s the deal, Tammy…

While there’s nothing barring a company from attempting to collect forever, their legal remedies do expire, and they’re defined by the laws in your state. To find the statute of limitations on debt, check out this chart from CreditInfoCenter.com, or this one from BCSalliance.com. In Florida, they have four years to collect a bad debt for “open accounts” – the category that includes credit card debt.

But just because they can’t win in court doesn’t mean they can’t sue. Nor does the statute of limitations prevent them from calling you, sending you letters, or otherwise trying to get you to pay. In fact, this practice is quite common. Collection agencies and law firms routinely buy old debts for pennies on the dollar and attempt to collect them. And they’re certainly not above saying or doing just about anything to get you back on the hook.

Tread carefully

The laws regarding debt collection are tricky. For example, there are states that allow otherwise legally noncollectable debts to be reinstated if the consumer makes a payment – or even acknowledges the debt.

Keep in mind that after the statute of limitations expires, unless the debt has been charged off or discharged in bankruptcy, you still owe the money. In other words, the statute of limitations doesn’t wipe out the debt, it just reduces the legal remedies available to collect it. So if you find yourself in this situation, the smart move is to call a consumer attorney (you can find one at the National Association of Consumer Advocates’ website) and ask them what to do.

Do this before responding in any way to any collection notice or other contact from a collection agency. Otherwise, you might inadvertently make yourself liable for an old debt.

Your credit report

What shows up on your credit report is determined not by state but federal law. The credit reporting agencies (Experian, TransUnion, and Equifax) have to remove most negative information after seven years. Bankruptices can remain on your report for up to 10 years, and there are some other, less common debts, like unpaid taxes and child support, that can remain on your report indefinitely.

The seven-year period normally begins 180 days after the debt becomes delinquent – the day you first missed a payment. But if you start once again making payments, the debt could reappear.

Here’s what to do…

There are plenty of places to learn more. MSN’s Liz Pulliam Weston has written some great stuff on this topic: See Is There a Statute of Limitations on Debt? and Don’t Ignore That Debt Collector. But no matter how much you read and think you understand, I’d still advise at least talking to, if not hiring, an attorney. The more money at stake, the more important this becomes.

While I’m all for do-it-yourself solutions for everything from remodeling to making a will, this area is too much of a minefield to go it alone. It’s a complex topic, and reading simple stuff online probably won’t answer all your questions or completely put you at ease. Talking to someone who does this for a living, however, will.

Source: Money Talks (http://s.tt/144uq)

Reading and understanding a credit report can be a difficult mission for many people.  There are often things included that we simply don’t understand.  We have learned what contributes to our credit and how to improve our score, but people sit staring blankly at their credit report trying to make sense of the words and numbers.  If this is the situation that you have been in, please read below to get a better grasp on the red lights you should be looking for on your credit history.

Identifying Factors:

This part of your credit report will have personal information about you, such as addresses, social insurance number and other sensitive data.

• Be sure that all information is correct.
• Any aliases will affect your score.
• Look over your date of birth to make sure it is accurate.
• Carefully review your employment history, as well as current and previous addresses.
• If you see any discrepancies please investigate it further.

Negative Items:

Delinquencies affect your credit score greatly.  You should look at two factors:

1)     How long ago was the late payment?

• The more time you have not missed a payment the less effect to your credit.

2)     How late was the payment?

• The later the payment the more negative effect to your credit

High Debt to Credit Limit Ratio

There are two ways the credit bureaus take this into account:

1. The balance on the card to the credit card limit.

• For instance a card with a $300 balance and a limit of $1,000 is a 30% ratio.

1. All debt on all cards verse limits on all cards.

• For example you have 3 cards with a total line of credit on $10,000.  Your total debt is on those 3 cards is $2,000 so your ratio is 20%.

Collection Activity

Collections will affect your credit.  The longer they are on your credit report the less affect.

Options are:

• Pay it in full
• Settle

Public Records

ü  Bankruptcy

ü  Judgments

ü  Liens

ü  Foreclosures

Inquires:

Inquiries are any time someone pulls your credit.  There are two types of inquires.

The good news is that there are ways to rebuild your credit score in a relatively short amount of time.  There is a saying out there “to get credit you must use credit”.  The problem that arises is if you are labeled as a “credit risk” it may prove difficult to qualify for a credit card.  Therefore, you may think you are at a dead end.  This is not the case; you are simply at a detour.

Secured cards have proved to be a wonderful stepping stone to building credit. Secured cards require that funds be put into an account to insure that if payments are not made the money is there.  Think of secured cards as an insurance policy.  You don’t want to have to use it, but it is there in case the unexpected happens.

Rebuilding credit takes patience and dedication.  A major factor in your credit score as we spoke about previously is your debt to credit ratio.  In this economy it is difficult to pay necessities, no less pay down credit card bills, however it will greatly improve your score.  The first step is to discontinue charging on any credit cards that have high balances.  Next, set up a consistent payment plan to reduce the balance.  Understandably this will not happen overnight, however as time passes you will notice a reduction in your debt and a raise in your score.

Another factor to rebuilding your credit score is paying bills on time.  Bill pay, which is offered by many banks, is a great service to take advantage of.  Bill pay is set up through your financial institution directly by providing the names and addresses of your creditors.  You designate a day of the month that you would like the bank to withdraw the funds from your account and send a check to your lender.  This service insures on time payments to all creditors you have elected.  The disadvantage to this service is if the money is not in your account you could incur fees for bouncing the account.

Finally, watch your credit consistently.  Dispute any inaccurate information.  Pay off any collection accounts to the best of your ability.  Fortunately, the older the account the less affect on your credit score.  Don’t make a habit of applying for new credit, as this will have a negative effect on your score.  Furthermore, avoid closing older accounts, especially accounts that are in good standing since 15% of your credit score is length of credit history.

Keep in mind you didn’t get into debt in a few days therefore you will not get out of debt in that time period either.  Stay focused though and you will see the light at the end of the tunnel.   Good luck on your journey to rebuilding your credit score!

One of your top resolutions this year should be to stay on top of your credit score.  We are all aware that our credit scores are important in securing our chances of getting approved for loans, insurance and employment.  However, too many people don’t check their credit report for months or even years.  You are entitled to one free credit report each year from all 3 bureaus, so start 2012 by accessing your credit history by going to www.annualcreditreport.com.  Those people that do pull their reports often have no idea how the credit bureau comes up with the 3 numbers that affect our daily lives so much.  Let’s dive into it and be an educated consumer.

Our credit scores are made up of 5 components.  The chart below from my www.myfico.com shows the breakdown of each component and how much effect it will have on your score.

Payment History is 35% of our score.  Most citizens are well aware that paying our bills on time is an important part to maintaining a good credit status.  Older bills will not have as much impact on your rating as recent accounts.  It is vitally important that all accounts are in a current status.  Some bills will impact your credit score worse than others.  For instance, missing a mortgage payment will affect your score drastically, while a credit card payment will not do as much damage.

Often time’s people overlook the impact that credit to debt ratio, also known as amounts owed, has on their credit score.  Credit to debt ratio sounds complicated, however it is quite simple.  This term refers to the balance you have owed on your credit card presently to your credit limit.  Let me give you an example.  You have a credit limit of $1,000 on your credit card and your balance is $400, therefore   your credit to debt ratio is 40%.  Credit bureaus like to see a credit to debt ratio for revolving accounts (credit cards, unsecured loans) under 30%.  If you are trying to reestablish or build your credit score the lower this ratio the better.

No credit is worse than bad credit!  How many people have heard that statement?  Probably many of you and it is 100% true.  Length of credit history makes up 15% of your score.  Having no credit puts you in a high risk category with the bureaus since they don’t know how you will pay your bills.  Whereas, someone who has a credit history of 10 years provides an outlook of how they will handle credit in the future.  If you have older cards don’t close them as this will maintain your credit history on file.  For those citizens who have no credit start to build a history to secure your financial credit status.

When was the last time you went to a store and they offered you a discount to apply for a credit card?  The answer is probably very recently.  At most places this is a common practice.  The question is did you say yes and apply?  If you answered no then you are on your way to building good credit.

Nonetheless, if you did agree to apply you are affecting your score.  Each time you give someone permission to pull your credit report it is considered a hard inquiry.  Hard inquiries will not kill your credit score, yet they do have a temporary negative consequence.  Avoid applying for numerous cards in the future.  There are soft inquiries as well which do not affect your credit.  Soft inquiries are when someone pulls your credit without your permission, such as preapproval card or if you pull your own credit.

The last component of your score is types of credit.  This takes into consideration revolving debt, secured debt, installments, medical bills and any other debts.  You want to avoid taking out multiple credit lines as this will show a need to live off of credit.

Today we have learned how our credit scores are calculated.  This knowledge can be priceless in preventing future credit problems, or rebuilding your current status.  With a little effort and time you can now be in charge of your credit future!

As we head into a new year it is a great time to look back over the year financially.  Analyze what decisions you made in 2011 that you regretted or were pleased with.  Don’t get discouraged over past financial mistakes.  The great thing about going into a new year is you can learn from the past.  2012 gives you the opportunity to keep your good habits and drop the bad ones.

Last month we talked about saving money during the holidays, however most of us need to save money all year around on everyday expenses.  Let’s review some slight changes in our daily lives that can boost our savings accounts, and start the New Year off with some good savings habits.

Electric

• Automate your energy use.  An effective way to lower your energy bill is to invest in a programmable thermostat.  The device will cost around $30, however the savings is estimated around $100 annually.  You can automatically set the thermostat to raise the temperature when you are not there.
• Put a timer on your water heater.  There is no need to have hot water when no one is there.
• Unplug any electronics that you are not using.  Plugged in electronics account for around 10% of your bill.
• Upgrade your light bulbs to compact fluorescent lamps.  This action alone will save 10% to 15% on your electric bill.

Water

• Take showers instead of baths.
• Only run the washing machine when it is completely full.
• Do not hand wash this will consume more water than using a dishwasher.
• Water your lawn in the morning or after the sun goes down to avoid evaporation.

Cable

• Switch companies.
• Shop for cable online.
• Ask your carrier about bundle packages that include several services for a discounted price.
• Challenge your cable company on any specials or promotions.
• Avoid pay per view.

Groceries

• Make a list before shopping.
• Buy healthy food.  Surveys have proven that healthy food is cheaper.
• Review your receipt for any mistakes.
• Check ads and flyers for any sales in your area.
• Buy generic when possible.
• Shop alone.  Children and spouses will cost you more money to shop with.
• Never shop on an empty stomach.  You are more likely to overbuy.
• Avoid impulse buys, such as the magazines or gum in checkout lines.
• Know your prices.
• Use coupons if you normally purchase the product.  Coupons are the retailer’s way of enticing you to buy the product.  Don’t fall into that trap.

Gas

• Be sure all maintenance is up to date.
• Avoid rush hour and stop and go traffic.
• Lighten the load.  The heavier the vehicle the more fuel it takes to move it.
• Easy on the brake.  Slamming on your brake will waste gas.
• Keep your car cool.  The sun will evaporate gas.
• Avoid topping off.  Topping off is a term used when someone continues pumping gas after the pump has stopped.  Once the pump stops automatically the car cannot take any more fuel therefore it is evaporating or spilling out.
• Use your air conditioner instead of driving with your windows down.
• Pay with cash to receive a discount.

Entertainment

• Take advantage of your local library.  Libraries now offer a variety of services, such as arts and crafts classes, yoga classes as well as books, magazines and movies. 
• Research your community or town.  Numerous areas have common areas that they offer free concerts, movies and other free activities within. 
• Have a picnic on the beach with your loved ones. 

Last month we reported that banks were going to start charging a monthly fee for making purchases with a debit card.  However, as the announcement hit the mainstream media many banks announced they would no longer do this.  Then on November 1^st Bank of America, the largest bank by deposits, stated that due to their customers concerns and outrage they would not charge the fee either.  As we covered last month this fee was going to be charged due to the Durbin Amendment which limits the amount of money a bank can charge a merchant for debit card fees.

Banks are estimated to lose billions of dollars revenue annually.  They were trying to recoup some of the funds by charging the monthly fee to the card holders.   There is no cap on fees that banks can collect from credit card purchases so the banks were hoping that consumers would use credit cards instead of debit cards once the fee was implemented.  It would have been a no lose situation for the bank since they would have collected a fee either way.  If the cardholder used a credit card the merchant would pay a fee, whereas if the purchaser used a debit card the monthly fee would be collected from the accountholder.  The banks cannot afford to take that loss, therefore the question lingers how are the banks going to make up for this loss now?  Only time will be able to answer this question.  There is much speculation recently that it will be made up with other fees, however nothing has been stated as of yet.

With this new development numerous account holders are reevaluating their banking needs.  It is important to determine what type of bank and account is right for your needs.  Online banking has become increasingly popular lately.  Online or Internet banking is precisely what it says.  You do all your banking needs through a secured website.   There are advantages and disadvantages that we will review to see this option would meet your financial needs.

Advantages

• Eliminates waiting.  If you are an online banker you will no longer need to see a teller for any of your needs.  Withdrawing cash would be done with an ATM card and deposits are either mailed in or done with your phone.
• Little to no fees.  Since you are not accessing any personal there are usually no fees associated with these banks.
• Unlimited Access.  Considering you are not relying on a person you can access your accounts at all times through the Internet.
• No paper statements.  Everything can be accessed online therefore you have immediate access to any of your financial needs at your fingertips.
• Bill pay is available.  Bill pay is a service that is offered through online banking usually at no cost.  This service will send out a check to your lenders on the day you request every month.  Furthermore through online banking you are able to access the history of the payments that were sent.
• Fast and covenant.  Most online banking facilities process checks and deposits very quickly and effectively.
• They are FDIC insured.

Disadvantages

• Cash deposits can be tricky or impossible.  If you are constantly depositing cash online banking may not be a viable option.
• Must have access to Internet to bank.
• Security concerns since you are doing all financial transactions on the computer.
• Should have basic knowledge of using a computer.
• If you have a problem it may be hard to find someone to speak with and there could be fees for contacting the customer service department.

Layaway is back in full force.  Wal-Mart, K-Mart, Toys R Us and other large retailers have recently announced that they have brought this service back for the holiday season.  Layaway has proved over the years to be a great alternative to paying with plastic.  This service offers the customer the ability to make payments over a period of time without accruing interest.  Some stores do charge a fee, however it is a flat rate and usually more cost effective than interest payments on a credit card.  Follow the tips below to ensure layaway works to your benefit this holiday season.

7 Important Questions to Ask:

1. What is the total price of purchase including fees, or charges?
2. When is the minimum payment due and how much is it?
3. When must the final payment be made?
4. Is there a cancellation or refund policy?
5. Will the item you are purchasing be set aside so that no one can buy it?
6. How much money do I need to put down?
7. What is the store’s policy if the item goes on sale after you have put on layaway?

Benefits of Layaway

• Avoid snoopers!  The store will hold your purchases therefore you don’t have to worry about your little ones or significant others finding the gifts.
• Eliminate credit card purchases.  Many shoppers maximize their credit limits, which has two negative effects.  The first one is the items you purchased you will be paying interest on so buying an item on sale really isn’t saving any money once you add on interest charges.  The other negative effect is on your credit.  Maximizing your credit limit will lower your credit score.  You want to try to keep your credit debt ratio at 30% or below to secure a good credit score.
• Beat the crowds.  You can shop before payday which means you won’t be doing last minute shopping and will avoid the majority of crowds.
• You have the option to secure items before they run out of stock.
• If you miss a payment to layaway it will not be reported to the credit bureaus.

Disadvantages of Layaway

• Many customers will overbuy since the items are not paid for immediately.
• If the items go on sale you may not be able to get that discounted price.
• Inexpensive items may not be worth putting on layaway after taking into account the fees associated with the service.
• Some fees associated with layaway can get expensive.
• If you cannot complete the payments you may not get your money back.  Many stores will instead refund you with a gift card.