As a result of National Warranty's liquidation and the inability to quickly recover funds sufficient to either pay all of the repair claims or prorated refunds accruing under the contracts issued prior to June 7, 2003, Warranty Gold has sought the protection of Chapter 11, Title 11, of the United States Code. The reorganization case was filed on November 11, 2003 in Austin, Texas. Judge Frank Monroe presides over the reorganization. The case number is 03-15721.

As of today, Warranty Gold operates under the supervision and authorization of the federal court. All extended warranty contracts sold today (as well as those contracts sold after June 7, 2003) are fully effective and enforceable.

However, if you bought an extended warranty contract prior to June 7, 2003, your contract is no longer effective. Those contracts that were backed by National Warranty are not in force and cannot be relied upon to pay repair claims. Further, as of November 12, 2003, those contracts have been effectively terminated by order of the federal court.