The judge presiding over a recent hearing in the United States Bankruptcy Court, Middle District of Florida, ruled that a debtor’s frequent flyer miles are not protected under bankruptcy laws. The trustee in the case requested for authorization to use the membership reward points and frequent flyer miles of the debtor for the purchase of airline tickets, hotel accommodations and other travel related items. Judge Briskman approved the trustee’s request to use the debtor’s Delta miles. As for the American Express points, the judge hasn’t decided yet.
So if you are headed to bankruptcy court because you spent too much trying to earn miles on your co-branded credit cards, burn the miles before you go.