Credit back to a credit card account included in Bankruptcy

[sailing2013]

Short of the story, due to a dispute with a merchant, I am entitled to $400 refund.

I had asked the merchant to issue me a check, but they said they could only refund to the original method of payment; and that credit account was included in my bankruptcy.

Can I request this refund from the creditor?

Or what options do I have?

[TXskyblue]

Good question.

I think I'd tell the merchant that I've since closed the credit card account. Therefore, there is no credit card to refund it back to.

They may end up issuing you store credit.

[sailing2013]

Yeah, what makes me sore is, after i told the CS representative that the original account was closed, he told me that a check would be mailed.

Then when I followed-up, I learned that they charged it back to the credit card company.

[LadyInTheRed]

I think it's fair that the credit card company got it. You never paid anything to the store, right? So, why should you get the refund?

[sailing2013]

Touche.

Though in a way I did pay for it--I listed the total debt from the credit card, $4K, on my BK schedules. Had I known about the refund, it would have been only $3600.

I initiated the refund months ago--its just coincidence that it happened the same week as my 341 meeting.

[anderson238]

I had the same situation with Discover card, cancelled my toll road and had a $36.00 credit, they said it would be refunded to me, it went back on the BK'd discover, and they told me the same as you, it would be issued to me, but didnt pursue, because yes it was BK'd and they can have the $36.00

[bcohen]

I fail to understand the logic here, that one can discharge a credit card debt in bankruptcy, but then expect to keep any refund which is subsequently placed on the account. Unless the debt was in fact paid off prior to filing, I fail to see how YOU paid anything to the merchant in the first place, so why would you be entitled to any credits which might be issued later?

[sailing2013]

Because the account was included in bankruptcy, and the account had a specified amount. Its as if that amount was "paid."

[Pjmax]

Because the account was included in bankruptcy, and the account had a specified amount. Its as if that amount was "paid."

There really isn't a 'specified' amount for a no-asset 7. The figures used in filing, of course should be as accurate as possible, but with fees, interest, etc., it's hard to know for sure. Many actually have a difficult time figuring out exactly how much is owed to whom. Accounts can be charged off and sold multiple times, which was true for me. My attorney listed the charged off amount for the orig, and -0- for all the subsequent owners of the debt. If there were assets involved, a creditor would have submitted a claim for an amount.

And, I agree with bcohen on this. You expect to get money back from something you didn't pay??

[catleg]

The merchant is going to put it back on the original form of payment because that way he gets credit for the interchange fees, in other words it only costs him 97c - 98c on the dollar to make the refund.
Really there is no point in returning anything you bought on a credit card included in bankruptcy.
Ebay it, throw it out, give it away, return w/o receipt for store credit, etc.
Debit card returns usually are refunded in cash, in my experience.

[ksgirl38]

Good question.

I think I'd tell the merchant that I've since closed the credit card account. Therefore, there is no credit card to refund it back to.

They may end up issuing you store credit.

This is partially true. It depends on the amount of the purchase. I'm not sure about $400, but I returned a few things after I had filed to Macy's. One of them was under $25 so they just gave me the cash back. The other one they issued me a store credit. I think it really does depend on the retailer. I also returned something I had purchased on my debit card from a bank account that I had since closed. In that case I got a check from the bank. Being that yours is $400 they may keep it if you included that card in your BK.