Credit Card Reward Point Collection/ Objection

[Bankruptcy20]

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...

[relief13035]

I cashed in ALL my American Express reward points prior to filing. I exchanged them for American Express gift cards that I used to buy groceries and essentials. These are points you have earned don't let them go to waste.

[albacore44]

Cashed mine in for Restraunt cards.......Chili's......Red Lobster, etc. Probably got $500 bucks or so of them stashed. Never know how tough it may get, and you may want to take your wife to dinner now and then.

[JustOverBroke]

DW and I cashed all our card points in we got $300.00 cash and $60.00 in Target gift cards.

You better cash them in before you lose them you earned them there yours.

[anime-chicka]

I never heard a peep from Juniper for the $25 iTunes gift card they sent me a couple of months after I'd stopped paying them. I'm happily using it to download the odd song here or there for my iPod.

[Bankruptcy20]

Thanks all!

[catleg]

You definitely want to use up all these kind of points, such as Citi Thank You points, Amex membership rewards. They won't survive you defaulting on the underlying account yet they're generally not transferable so the trustee can't take them either. On the other hand, once points post to an actual airline or hotel program, you can just leave those in place.

[Bankruptcy20]

Thanks all.

Catleg, I remember you responding on casino markers on a different thread.

What are your thoughts of using casino reward points before BK, with an outstanding marker that may likely not get paid and instead be discharged? Do you think of that differently than CC reward points? Before these reward points get frozen.

I don't think I will do it, as at this point, it feels a bit different than if I spent those points when I was there... but that's just honest me!

[justbroke]

I used my American Express points and bought a Movado and some other things. I did end up losing about 14,000 points.

[BornAgain]

I had a lot of points with Chase -- could have redeemed for over $200 of gift cards at some good stores.

But I had already decided to file bankruptcy so I knew it would be wrong to redeem the bonus. Maybe not fraud (or maybe so), but morally wrong certainly. I just couldn't say to myself, "Get every last dollar I can out of them before I file." I know I 'earned' the bonus but they also 'earned' repayment. If they're going to lose out on $15K I can let $200 of bonus go.

Just my two cents.

[justbroke]

Just my two cents.

The points I spent from American Express, I certainly already "paid" for. Someone spending points before bankruptcy, doesn't necessarily mean that they didn't actually pay for them.

[StartingOver08]

Usually the points are a result of your payments - not of your charges!

[catleg]

Thanks all.

Catleg, I remember you responding on casino markers on a different thread.

What are your thoughts of using casino reward points before BK, with an outstanding marker that may likely not get paid and instead be discharged? Do you think of that differently than CC reward points? Before these reward points get frozen.

I don't think I will do it, as at this point, it feels a bit different than if I spent those points when I was there... but that's just honest me!

Probably best to just walk away from that casino and never go back, regardless of whatever points you have left, or any offers you might get in the mail.

They are pretty pissy about this stuff, so it's best to take the "high road".

[BornAgain]

I know what people are saying. And I know not everyone has the same problem with 'getting just a little more' before filing.

Is it okay to purposely cost the creditor just a little more when the debtor already plans to file? I had 'earned' points that could have got me $200 in Barnes & Noble gift cards (or a wealth of other gift cards, or even merchandise). All I had to do was click 'Redeem'. Chase would send it. Probably they wouldn't object at the 341. It's just a tiny amount (relatively speaking).

But it would be wrong. So I didn't. I don't see how anyone can argue that under those circumstances it would be a moral thing to do. "Hey, let me just take an extra little bit from you before I file." Not me.

[BornAgain]

Usually the points are a result of your payments - not of your charges!

And that changes the morality of taking the money/merchandise when knowingly going to file bk how, exactly?

Thanks for helping me understand where you're coming from.