Did you know when booking a holiday between £100 and £30,000 you can make a claim if the airline or holiday company goes bust? You dont even have to pay the whole balance using your card. You are eligible even if you have just paid the deposit in most cases. You can be covered if the airline goes bust, if the holiday company goes bust and also additional expenses such as buying more expensive flights to get home after an airline has failed.
Should you find yourself in this situation and you have paid by credit card you can Write to the credit card company, stating what you bought, where and when you bought it and how much you paid. Include copies of receipts so make sure you always keep them.You can then explain that you would like the credit card company to refund the purchase price into your credit card account. You would need to ask to make a claim under Section 75 of the Consumer Credit Act