Airline miles
Posted: Wed Aug 14, 2013 2:35 pm
Airlines miles are worth about a penny per dollar. That is why it takes
60,000 miles to buy a $600 airline ticket. I would get the client to bank
them at an airline and list them for a penny on the dollar, then exempt
same. If no wildcard, you may not be able to exempt them, but Mark is
right, they are not transferable while with the credit card company.
Once airline miles are banked at an airline, they can be given away, so I
would hesitate to claim they are worthless.
So unless there are a very great number of miles, it is very unlikely they
will be attractive to a trustee, and if the airline prohibits their sale,
no trustee could sell a ticket anyway.
d
On Wed, Aug 14, 2013 at 12:25 PM, wrote:
> **
>
>
> **
> I do not believe frequent flier miles have any value in a bankruptcy
> case. The rules of every frequent flier mile program I have ever read
> prohibit sale of the miles under any and all circumstances. All allow the
> frequent flier mile account holder to use miles for a free ticket or
> upgrade for a family member or friend. Some airlines allow for voluntary
> transfer of miles up to a capped amount to another frequent flier account,
> many times for a fee. The only instance I am aware where a court ordered
> involuntary transfer of miles is honored by the airlines is in the divorce
> property division scenario, where there is no sale involved (at least from
> the airline's perspective) I have never seen frequent flier miles
> administered in a bk case, nor am aware of any bankruptcy case law
> addressing the issue.
>
> Mark T. Jessee
> Law Offices of Mark T. Jessee
> "A Debt Relief Agency"
> 50 W. Hillcrest Drive, Suite 200
> Thousand Oaks, CA 91360
> (805) 497-5868 (805) 497-5864 (Facsimile)
>
>
> In a message dated 8/14/2013 12:01:03 P.M. Pacific Daylight Time,
> jim@wsrlaw.net writes:
>
>
>
> Colleagues:****
>
> ****
>
> What is your experience/practice when a client filing a Chapter 7 case has
> accumulated airline miles through a credit card? I know that credit card
> reward points are lost when a bankruptcy is filed listing that credit
> card as a creditor, but it appears that airline miles earned through a
> credit card may in fact be banked at the airline and not with the credit
> card company, so that the credit card company could not rescind or cancel
> them. Of course, any such miles would be a scheduled asset, although I
> dont know if they can be sold or transferred by the Debtor or a Trustee
> and how they would be valued. Any thoughts?****
>
> ****
>
> Jim****
>
> ****
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@wsrlaw.net
>
> *Certified by State Bar of California as Certified Legal Specialist in
> Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT
> OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
> LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION,
> DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE
> NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS
> MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.****
>
>
>
Airlines miles are worth about a penny per dollar. That is why it takes 60,000 miles to buy a $600 airline ticket. I would get the client to bank them at an airline and list them for a penny on the dollar, then exempt same. If no wildcard, you may not be able to exempt them, but Mark is right, they are not transferable while with the credit card company.
Once airline miles are banked at an airline, they can be given away, so I would hesitate to claim they are worthless. So unless there are a very great number of miles, it is very unlikely they will be attractive to a trustee, and if the airline prohibits their sale, no trustee could sell a ticket anyway.
dOn Wed, Aug 14, 2013 at 12:25 PM, <jesseelaw@aol.com> wrote:
I do not believe frequent flier miles have any value in a bankruptcy
case. The rules of every frequent flier mile program I have ever read
prohibit sale of the miles under any and all circumstances. All allow the
frequent flier mileaccount holder to use miles for afree ticket or
upgrade for afamily member or friend. Some airlines allow for
voluntary transfer of miles up to a capped amount to another frequent flieraccount, many times for a fee. The only instanceI am aware where a
court ordered involuntary transfer of miles is honored by the airlines is in the
divorce property division scenario, where there is no sale involved (at least
from the airline's perspective) I have never seen frequent
flier miles administered in a bk case, nor am aware of any bankruptcy case law
addressing the issue.
Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.
Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile)
In a message dated 8/14/2013 12:01:03 P.M. Pacific Daylight Time,
jim@wsrlaw.net writes:
Colleagues:
What is your
experience/practice when a client filing a Chapter 7 case has accumulated airline miles through a credit card? I know that credit card reward points are lost when a bankruptcy is filed listing that credit card as a creditor, but it appears that airline miles earned through a credit card may
in fact be banked at the airline and not with the credit card company, so
that the credit card company could not rescind or cancel them. Of
course, any such miles would be a scheduled asset, although I dont know if
they can be sold or transferred by the Debtor or a Trustee and how they would
be valued. Any thoughts?
Jim
James R.
SelthCertified Bankruptcy Specialist*Weintraub & Selth,
APC11766 Wilshire Boulevard, Suite 1170Los Angeles, California
90025Telephone: (310) 207-1494Facsimile:
(310) 442-0660E-Mail:
jim@wsrlaw.net*Certified
by State Bar of California as Certified Legal Specialist in Bankruptcy
LawNOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE
INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO
BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW,
USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY
PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
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