Credit Card Rewards

[indianamom]

Hello. My husband and I are filing Chapter 7 next Wednesday and I am wondering if I can cash in the reward points on some of the credit cards that I will be including in the bankruptcy. Should I spend the points before filing? I don't have a lot, but enough for a few $25 gift cards. What do you guys think? Cash them in ASAP?

[Flamingo]

Check with your attorney on this one because you will be gaining benefits off of a sum that you will be discharging as the points are accumulated from amounts charged. Could be issues from the creditors.

[ssmdem]

Have you been making payments on the cards? I'm asking because I know how mine worked, if I was late on my payments, I couldn't cash my points out anyway.

That being said, I just cashed out $98 in points while my payments were still current. BUT we don't plan on filing for quite a while. So that makes a difference. I would definitely check with your attorney.

[frogger]

I cashed mine out 120 days before bk. At the time, I was still current on the payments.

[indianamom]

I am still current on the payments. I will check with my attorney today. Thanks for replying. I haven't cashed any in yet...

[CreditCretin]

What did your attorney tell you, I am curious about this as well..

[iv65536]

In my case, it was frequent flyer miles, some earned using a card I discharged.

I declared the miles as an asset with a value of $1 on my schedules, stating that I was not allowed to sell them per the program terms, exempted them, and that was that.