Cancel and then they go bust?

pebblecat

Help! I need to know where I stand before we make a decision! So we have our dream holiday booked for August 15th, 2 weeks at Disney world staying in a Disney hotel, dolphin swimming the lot  :'( but obviously even if the flight goes ahead and the hotel is open, Disney will not be at it's most magical by a long way so with a heavy heart we think the best thing to do is to cancel and forego the £700 deposit. Unfortunately, and without hindsight, I starting making additional payments in February and have so far paid £3.5k. I know I am entitled to £2.8k back if I cancel before balance due date (23rd May), my question is - If Virgin were to go bust after we cancel but before we receive our refund - where do we legally stand?
(I paid everything using a Visa debit card, in 3 installments - deposit of £700 last June, £2.8k split into 2 payments, early and late February - remaining balance to pay - £10k)

[Deleted User]

You'd raise a chargeback or go via ABTA.

pebblecat

Thanks - will ABTA still cover me if I have cancelled the holiday myself and just haven't had the money over and above the deposit back yet? I've tried looking on their website but it's not clear!