Air Miles Points in Bankruptcy
When it comes to a full-scale financial overhaul, like bankruptcy, it is common to wonder about specifics.
One such inquiry is what the fate of your air miles will be after your filing.
Due to the expiration and transfer policy of air miles specifically, many wonder what will happen to those points upon bankruptcy filing.
Essentially, under the Bankruptcy and Insolvency Act, all assets are included in your property assessment when you file for bankruptcy.
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This includes Air Miles.
Since, technically, you own these miles, they are subject to seizure.
While there are certain exceptions to property seizures like cheap cars, clothing, or trade tools, there is no such clause in place for any form of reward miles.
This means that, technically, your air miles are fair game when it comes to asset seizure.
However, this does not mean that they will necessarily be taken.
The catch is that, since air miles have little to no liquid value, there is no financial benefit to seizing them.
They cannot be redistributed to your creditors as a form of payment.
Keep in mind that this is only true if your points are held independently from a credit card.
If they are a part of a credit card, the card will no longer be accessible and thus your points will not be accessible either.
Consider the personal value of the points; and, if you are thinking about bankruptcy, endeavour to use the points prior to the proceedings.
This way, regardless of whether they are independently held or on a credit card, you get the full value of the points without impacting the financial aspects or ethical proceedings of your bankruptcy.
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