Has anyone had any experience with using your credit card reward points before a BK?
Imagine you have a lot of Amex reward points, Chase/Citi reward points, and so forth, and you redeem a bunch of those points for something, say a TV.
Months later you file BK. I can't see the CC or trustee objecting to the underlying charges that created these points for you. Only thing I could see is if the trustee claims you didn't list those assets. But, say you did on your filing. I can't see any issue here.
OK, make my question even more interesting. You redeemed points for a TV, you sold the TV on Ebay, you used the cash to pay for your utilities.
It would seem better to not to use any of those points before a filing, as to why aggravate a creditor, right? But, what if those points have been accumulating over years and years, back when you were paying the minimums and balances? It doesn't seem fair to just lose all those points. And, I can't see this as a fraudulent luxury purchase within the 90 days, as you are not incurring any new dollar charges.
Anyone have thoughts? I would think people with credit problems would have amassed a lot of points over the years...
Imagine you have a lot of Amex reward points, Chase/Citi reward points, and so forth, and you redeem a bunch of those points for something, say a TV.
Months later you file BK. I can't see the CC or trustee objecting to the underlying charges that created these points for you. Only thing I could see is if the trustee claims you didn't list those assets. But, say you did on your filing. I can't see any issue here.
OK, make my question even more interesting. You redeemed points for a TV, you sold the TV on Ebay, you used the cash to pay for your utilities.
It would seem better to not to use any of those points before a filing, as to why aggravate a creditor, right? But, what if those points have been accumulating over years and years, back when you were paying the minimums and balances? It doesn't seem fair to just lose all those points. And, I can't see this as a fraudulent luxury purchase within the 90 days, as you are not incurring any new dollar charges.
Anyone have thoughts? I would think people with credit problems would have amassed a lot of points over the years...
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