Opinions on pre-paid reloadable gift cards?

[lostindebt]

My husband recieves a small $393 expense re-imbursement from work for business related expenses. In the past this has been done as a direct deposit to our account at the end of the month. The problem is that this shows up from his emloyer and according to a lawyer we spoke to could be perceived as "income".

So, we are trying to figure out how to completly seperate our personal finances from his business ones so that the trustee will see only legitimate income.

In researching this we discovered re-loadable visa cards and thought we could sign up for one, and then provide his employer with the month end statement that they could re-imburse directly to the gift card. My issue is these cards ask for SS# , and I am concerened that this will show up as a "cc" in the BK filing process.

His employer DOES NOT offer a company card issued to him that they repay.

Sugguestions?

[ace13]

I'm curious about something similiar as my Employer does offer -actually mandates - that I use the corporate card for travel. I asked my attorney if I had to list it and he said he would research the issue since it is NOT on my credit report or reported under my SSN and I could be terminated if I didn't pay it off monthly.

The second issue is that I get reimbursed money for my mileage, subsistance and hotels and that is the money I use to pay that card. It is direct deposited into my account. My attorney advised we should list as other income and explain if asked.

Anyone out there have similar situations, specifically corporate cards issued by employer? How was it handled in BK? Thanks

[OhioFiler]

If the reimbursement is expense related and won't show up on your W-2 as income it's really moot. You can prove the deposit simply offsets an equal expense.

If the employer includes the reimbursement in the form of income (as an allowance or per diem) then you have a slightly different matter. If this is the case your 1040 Schedule A should show your itemization of un-reimbursed business expenses. The trustee will consider this as well.

In either scenario it really shouldn't affect your case.

Regardless of your situation, trying to hide the reimbursement on pre-paid debit cards would be fraudulent and unadvisable unless you claim the cards as assets.

[whipster1]

I had the reimbursed expenses problem, it was about 75-150 per month for gasoline. A note from my employer was all they needed...my trustee was nice though so your mileage may vary.

[AngelinaCatHub]

I had the reimbursed expenses problem, it was about 75-150 per month for gasoline. A note from my employer was all they needed...my trustee was nice though so your mileage may vary.

Most of the time, you have to put in your expense statement. I did in my 34 year career (with the job I dearly loved. AT&T [Attack And Terminate] killed my job and company). Keep copies of these if you have them. Show them to the Trustee (he probably would not even look at them and only acknowledge them). 'Hub

[ace13]

Most of the time, you have to put in your expense statement. I did in my 34 year career (with the job I dearly loved. AT&T [Attack And Terminate] killed my job and company). Keep copies of these if you have them. Show them to the Trustee (he probably would not even look at them and only acknowledge them). 'Hub

AngelinaCatHub,

What are your thoughts about the corporate card issued by my employer that is Mandatory? Do you think I would have to list as a creditor since it is NOT on my credit report and has a zero balance??

[AngelinaCatHub]

AngelinaCatHub,

What are your thoughts about the corporate card issued by my employer that is Mandatory? Do you think I would have to list as a creditor since it is NOT on my credit report and has a zero balance??

The card is not your property or responsibility. You are only and authorized user. I had to have one too. However you'd be in a bind if you did not pay the card. Not with the law, with unemployment. 'Hub

[backtoschool]

AngelinaCatHub,

What are your thoughts about the corporate card issued by my employer that is Mandatory? Do you think I would have to list as a creditor since it is NOT on my credit report and has a zero balance??

Cards with zero balances do not have to be listed on your creditor matrix. Typically corporate amex cards only report to your personal credit report once you default on the card. Corporate cards never report anything positive to your personal credit reports, but can report negative credit information to your personal credit report.

[AngelinaCatHub]

Cards with zero balances do not have to be listed on your creditor matrix. Typically corporate amex cards only report to your personal credit report once you default on the card. Corporate cards never report anything positive to your personal credit reports, but can report negative credit information to your personal credit report.

That's a bummer.

[OhioFiler]

Cards with zero balances do not have to be listed on your creditor matrix. Typically corporate amex cards only report to your personal credit report once you default on the card. Corporate cards never report anything positive to your personal credit reports, but can report negative credit information to your personal credit report.

I used to administer a corporate AmEx program and we were able to give a card to anyone we wanted because the company was the guarantor of the debt. I don't recall ever having to submit social security info to AmEx for card issuance. Of course back then the actual card was a piece of stone and the number was chiseled into it, a la Fred Flintstone.


(pardon the cartoon reference)

[backtoschool]

I used to administer a corporate AmEx program and we were able to give a card to anyone we wanted because the company was the guarantor of the debt. I don't recall ever having to submit social security info to AmEx for card issuance. Of course back then the actual card was a piece of stone and the number was chiseled into it, a la Fred Flintstone.


(pardon the cartoon reference)

Some cartoons are okay.

There are two types of amex corporate card programs. In one program the company totally guarantees the debt, and in the other program, the company does not guarantee the debt. These days most companies have programs of the second kind. Negative card information will most likely show up on your personal credit report if your corporate amex program is of the second type.

[ace13]

Some cartoons are okay.

There are two types of amex corporate card programs. In one program the company totally guarantees the debt, and in the other program, the company does not guarantee the debt. These days most companies have programs of the second kind. Negative card information will most likely show up on your personal credit report if your corporate amex program is of the second type.

I am not sure who guarantees the debt legally for my card. I just reread my employers policy and it is not clear. It does state however that the employee will pay their deliquent account thru payroll deduction and possibly be terminated. As stated previously, the card is not on the three credit reports of mine.