If you booked a non-refundable vacation a year in advance do you still get to go if 6 months later you file bankruptcy? (funds, pay)

[Freesponge]

Suppose you booked a trip , own a business ,

You booked most that trip on redeemed rewards and then your business took a dive and ultimately you couldn’t pay bills but your trip is covered in full with meals included

If you file a bankruptcy do you lose the prepaid vacation ?

To be honest I support the vacation with no extra adds and before/after you deal hard at the mess

[LakeLifePA]

You're taking your screen name to new heights. If I were in your situation, I would not try to play games with the Bankruptcy Judge. It rarely works out well for the debtor. I sincerely hope it doesn't work in your favor.

[KaraG]

You let us know what the BK trustee decides. I'm certainly not going to give you any tips.

[Thatsright19]

Originally Posted by Freesponge

Suppose you booked a trip , own a business ,

You booked most that trip on redeemed rewards and then your business took a dive and ultimately you couldn’t pay bills but your trip is covered in full with meals included

If you file a bankruptcy do you lose the prepaid vacation ?

To be honest I support the vacation with no extra adds and before/after you deal hard at the mess

I don’t know the actual legal answer, but it stands to reason to me that the cost of a trip isn’t just the part you prepaid. There’s ongoing cash out the door be it for other things like gas or whatever. As a financial expert, I say it looks absolutely terrible for you and I would be all over it if I was in the capacity of looking out for the interests of the creditors. Your actions leading up to the bankruptcy filing will be analyzed.

I’d imagine you’d need to be fully transparent, and that’s not a set of facts that looks good while you’re stiffing creditors. Ie not mentioning this to the judge is lying by omission in my opinion.

It may look better to sell the trip to recover cash to provide to the bankruptcy judge to settle affairs.


Also obligatory user name checks out for this obvious discussion trolling.

[rjm1cc]

I would confirm with your attorney, but based on the idea that the trip was of no value in the bankruptcy I would say you can still go. If you could get a refund or sell to another party then it would probably be part of the bankruptcy.

[Freesponge]

Originally Posted by rjm1cc

I would confirm with your attorney, but based on the idea that the trip was of no value in the bankruptcy I would say you can still go. If you could get a refund or sell to another party then it would probably be part of the bankruptcy.

Agreed. The idea here is to not spend a penny on anything extra and for the what ifs you turn to a family member to bail you out as a last resort. But since their money isn’t your money I don’t think creditors can tap gifts from other family members. Those family members are legally allowed to gift cash to a bankrupt individual and stipulate that this money is for a specific purpose and if it comes down to it, paying for services on behalf of the bankrupt party using a debit card directly over the phone so money doesn’t pass through the hands of the bankrupt person .

And then I don’t see how this would be a bankruptcy concern as long as all money received in the name of the bankrupt person through direct deposit is on the table for bankrupt settlement.

I also would support a special kind of go fund me where you can gift money to a bankrupt person but they cannot use it as for whatever they want, in fact maybe make it they can only use matching amounts from it based on the amounts paid to settle debts .
(So suppose a bankrupt person owes $100,000 and receives a gift of $500
Then while deciding the settlement terms , the person would have to maybe pay $500 to creditors in order to free up the $500 gift which would then be a $500 excluded from the bankruptcy.

Then a gifter who wants them to have it not for creditors will want to give lots of $5 gifts spaced days apart so the bankrupt recipient can free up the small funds in faster increments and this would actually be good for creditors not bad …. Because this would lead to lots of small fast debt repayments that would build up faster than apparent. It would create trickle streams of debt repayment

So this works where ultimately until terms are set in what rate debt must be repaid at which point the debtor retains a hold of surplus cash as long as they pay the required amounts due …. Then gift money is not garnishable

But while all assets are under seizure, they should have a rule where gifted money is free spending as soon as the amounts received are paid out of other money sources to creditors… at which point the gifts are “unlocked” and go on a special debit card that is exempt from assets included in bankrupt terms…. Alternatively a gifter can choose to also by gift pay a creditor voluntarily on behalf the bankrupt party and then also gift an equal amount of cash to that debit card. Wouldn’t this be a good idea ?

[Lillie767]

Originally Posted by Freesponge

Agreed. The idea here is to not spend a penny on anything extra and for the what ifs you turn to a family member to bail you out as a last resort. But since their money isn’t your money I don’t think creditors can tap gifts from other family members. Those family members are legally allowed to gift cash to a bankrupt individual and stipulate that this money is for a specific purpose and if it comes down to it, paying for services on behalf of the bankrupt party using a debit card directly over the phone so money doesn’t pass through the hands of the bankrupt person .

And then I don’t see how this would be a bankruptcy concern as long as all money received in the name of the bankrupt person through direct deposit is on the table for bankrupt settlement.

I also would support a special kind of go fund me where you can gift money to a bankrupt person but they cannot use it as for whatever they want, in fact maybe make it they can only use matching amounts from it based on the amounts paid to settle debts .
(So suppose a bankrupt person owes $100,000 and receives a gift of $500
Then while deciding the settlement terms , the person would have to maybe pay $500 to creditors in order to free up the $500 gift which would then be a $500 excluded from the bankruptcy.

Then a gifter [ did you mean grifter? ] who wants them to have it not for creditors will want to give lots of $5 gifts spaced days apart so the bankrupt recipient can free up the small funds in faster increments and this would actually be good for creditors not bad …. Because this would lead to lots of small fast debt repayments that would build up faster than apparent. It would create trickle streams of debt repayment

LOL

If you took half the amount of effort you put into trying to game and beat the system, you might actually be successful and not bankrupt.

And now - all those people on C-D who would donate to a fund for bankrupt people, please raise your hands. Higher please, I can't see all those hands which surely must be raised to support bankrupt people.

[Freesponge]

Unlocked should mean money that can’t be taken from a bankruptcy person regardless of how much they owe

[oregonwoodsmoke]

The bankruptcy courts will decide. List the trip with your assets.


I can't even begin to think about how angry I would be if you stiffed me for a large amount of money and then took off on an expensive cruise the next week.

[Lowexpectations]

Originally Posted by oregonwoodsmoke

The bankruptcy courts will decide. List the trip with your assets.


I can't even begin to think about how angry I would be if you stiffed me for a large amount of money and then took off on an expensive cruise the next week.

Folks anger would be irrelevant imo. If they trip is non refundable, it has no value. Factually if that’s the case I don’t see the person being blocked from going.