It's almost exactly 2 years to the day since Monarch went bust. We were booked to fly with them 2 days afterwards and our flights, accomodation and hire car were all booked separately.
I'd seen stuff at the weekend that gave me a bad feeling and I got up that Monday morning, saw the news and immediately went looking for replacement flights,
Luckily I managed to find new flights from the same airport on the same dates as the Monarch flights that had just gone poof, so we could still go on holiday with just minor tweaks to our car hire and parking booking due to different flight times. The cost was £200 more than the original flights, but because I'd paid by credit card, we eventually got the cost of the Monarch flights and the extra £200 back. We did have scheduled airline cover on our travel insurance, but weren't actually covered because we hadn't flown out. All it would pay for was new flights to get the people already out there home. So if you need replacement flights, get looking fast and just stick them on a credit card if you can, as chances are you'll get your money back from the original booking eventully.
I'm glad I did that straight away, as just hours later, all the other flights got vvv expensive and then sold out. I saw return flights to the Med on Jet2, Ryanair, Easyjet etc in the weeks following the Monarch collapse for over £1k pp
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Friend was booked on a Monarch package at about the same time and they were offered the choice of their original destination, but flights from another UK airport about 200 miles away, or from a closer airport but somewhere else, they chose the latter.
If TC collapse, one useful source of info will be Monesavingexpert, to explain passenger rights, how to continue with your trip and get as much money lost back as possible. There's an article from earlier this year on the website, and I fully expect that if they do go bust, it will be updated and republished within hours.
www.moneysavingexpert.com/news/2019/05/thomas-cook-reassures-customers-their-holidays-will-go-ahead---y/
But fingers crossed it will all get sorted and people are worrying about nothing.