Question: What happens to Aeroplan award tickets when personal bankruptcy is declared?
Jan 19, 2018, 10:33 am
#1
Original Poster
Join Date: Jan 2018
Posts: 1
What happens to Aeroplan award tickets when personal bankruptcy is declared?
What happens to airline tickets that are booked using aeroplan points when bankruptcy is declared? If I book a ticket using my aeroplan points and then am forced to declare personal bankruptcy is the ticket still valid? I’m thinking of flying from my home in Canada to a relative’s home in the US for a visit, but I’m concerned that I may not be able to fly if I’m bankrupt. Aeroplan’s T and C’s state that aeroplan membership goes away upon death or personal bankruptcy.
Last edited by 5313; Jan 19, 2018 at 1:00 pm Reason: Clarity
Jan 19, 2018, 11:49 am
#3
Join Date: Jan 2016
Location: YYZ
Programs: FOTSG Tangerine Ex E35k (AC)
Posts: 5,612
If I was in the office right now I'd be getting some strange looks for laughing that much
Jan 19, 2018, 12:07 pm
#6
Join Date: Oct 2013
Location: YEG
Programs: AC Lifetime SE100K, 3MM, SPG Lifetime Plat, Hertz PC, National Executive Elite
Posts: 2,901
It depends on whether Aeroplan purchased the ticket prior to your use, or not. If they purchase the ticket when they release it, there is no issue. I don't know the true relationship between AE and AC, though.
Jan 19, 2018, 1:29 pm
#7
Join Date: Apr 2009
Location: YYC / random hotel in YYZ
Programs: Back of the bus
Posts: 922
I think from a technical perspective it's an asset (prepaid) that you probably would have to declare to your trustee depending on value, especially if it was paid in the 12 months preceeding bankruptcy.
Reality - I would bet this stuff is never declared. But your best bet is to talk to a trustee for clarification.
Reality - I would bet this stuff is never declared. But your best bet is to talk to a trustee for clarification.
Jan 19, 2018, 1:39 pm
#8
Join Date: Oct 2008
Location: YYC
Posts: 4,035
I think from a technical perspective it's an asset (prepaid) that you probably would have to declare to your trustee depending on value, especially if it was paid in the 12 months preceeding bankruptcy.
Reality - I would bet this stuff is never declared. But your best bet is to talk to a trustee for clarification.
Reality - I would bet this stuff is never declared. But your best bet is to talk to a trustee for clarification.
Jan 19, 2018, 1:45 pm
#9
Join Date: Apr 2009
Location: YYC / random hotel in YYZ
Programs: Back of the bus
Posts: 922
And expect if you have creditors who are dicks... (LOL) that they would fight it with your trustee.
But honestly 99% of people don't claim them, nor report them to CRA on taxes as benefits earned.
But honestly 99% of people don't claim them, nor report them to CRA on taxes as benefits earned.
Jan 19, 2018, 1:58 pm
#10
Join Date: Oct 2003
Location: YVR
Programs: WS Platinum, former AC E35K
Posts: 6,335
I am a corporate trustee so I've never dealt with this before. Assuming that this is a personal bankruptcy (and not the bankruptcy of Aeroplan), theoretically it should be declared, but I am positive it never is, nor do I think the question is even asked by the trustee. It's likely something people don't consider to be an asset. I guess you could declare the value based on whatever gift cards you could redeem all of your points for and then reimburse the estate for that amount so that they don't need to form part of the assets. I'd be curious as to how a trustee would otherwise value the points.
Jan 19, 2018, 3:16 pm
#11
Join Date: Jan 2016
Location: YYZ
Programs: FOTSG Tangerine Ex E35k (AC)
Posts: 5,612
I believe market value is now $0.04 per mile. Plus tax.
Obviously most get them for less than that. Usage varies. My last spend was only 1.8cpm after taxes, my next will be over 4cpm.
Obviously most get them for less than that. Usage varies. My last spend was only 1.8cpm after taxes, my next will be over 4cpm.
Jan 19, 2018, 3:23 pm
#12
Join Date: May 2017
Programs: aeroplan
Posts: 158
I think they (aeroplan tx) get paid via a regular reconciliation process. I know when I check via Saudia, my ticket status for my upcoming trips (not being taken for 2+ months from now) indicate paid.
Jan 19, 2018, 3:50 pm
#13
Join Date: Apr 2017
Location: IAD / DCA
Programs: AA EP, Hilton Diamond, Hyatt Globalist, IHG Diamond, United Silver, Bonvoy Titanium.
Posts: 158
I'm guessing that is in the T & C because some individual decided at some point prior to filing BK to just buy an obscene amount of miles and know that the credit card that they used to pay for them would be wiped out in the BK and they'd be able to use the miles to travel and continue their lifestyle moving forward. It's horrible and morally awful, but it brings up something my wife's father always said "some people work really hard to not work."
Jan 19, 2018, 4:53 pm
#14
Join Date: Nov 2015
Programs: DL, Marriott & IHG Platty; HH Diamonte
Posts: 861
What happens to airline tickets that are booked using aeroplan points when bankruptcy is declared? If I book a ticket using my aeroplan points and then am forced to declare personal bankruptcy is the ticket still valid? I’m thinking of flying from my home in Canada to a relative’s home in the US for a visit, but I’m concerned that I may not be able to fly if I’m bankrupt. Aeroplan’s T and C’s state that aeroplan membership goes away upon death or personal bankruptcy.
Jan 19, 2018, 6:27 pm
#15
Join Date: Feb 2004
Location: USA
Programs: AC SE100K, F9 100k, NK Gold, UA *S, Hyatt Glob, Bonvoy Titanium
Posts: 5,195
Court: What is the (refund) value of this 160k mile J redemption for 8 people that you already booked?
You: Zero. honestly.
//yeah, i know, taxes and fees MIGHT be refundable
You: Zero. honestly.
//yeah, i know, taxes and fees MIGHT be refundable