The same thing happened to us on Christmas day. The airline we were due to fly to LAX with for our Disneyland trip went bankrupt so we were $3000 out of pocket! I phoned our credit card company (we needed to speak to the dispute department). We faxed our flight confirmation details to them, they sent us a form and we got our money back witin about 3 weeks. It was quite an easy process.
I hope you are able to book new flights.
Thankyou you have cheered me up today. I am now really hopeful we will be refunded like your family was. Is airline failures somthing that often happens in the USA?