Can creditors get money back from merchants?
Due to a changing life situation, I am now considering filing for bankruptcy (although possibly a consumer proposal). I am an avid golfer and have about a $1000 positive balance in my account at each of my two favorite golf clubs (one is in Canada, the other one is in the United States).
Basically, I put lump sums of money in there when I could in the past, and used the balance when I golfed. The thing is I used a credit card to put the balance on each account.
I am wondering, if I file for bankruptcy, do the credit card company have the authority to contact the clubs and ask for my balance to be refunded to them?
If so, can they also do that the club in the United States?
The credit card companies have no right to ask the golf clubs to refund those amounts if you file for bankruptcy.
However, the trustee will want you to transfer these funds to the trustee for the benefit of the creditors.
If you file a consumer proposals these balances can remain in the accounts.
– Earl Sands, Licensed Insolvency Trustee for Bankruptcy Canada.