Frequent Flyer “Property”

May 7, 2014

  • 51 Bankruptcy
  • 51X Discharge
  • 51X(C) Debts and Liabilities Discharged
  • 51X(C)2 Debts Arising from Divorce or Separation
  • 51k3365 Property Distribution and Alimony, Maintenance, or Support
  • 51k3365(2) Property Distribution or Spousal Support, Particular Applications
  • 51k3365(3) k. In General.

157 EvidenceAlthough requirement in dissolution decree that Chapter 7 debtor transfer to former spouse half of frequent flier airline mileage credits was intended as form of “property settlement” subject to discharge, failure to enforce terms of dissolution decree pertaining to frequent flier miles would create windfall, unduly enriching debtor, thus warranting denial of discharge of debtor’s duty to transfer one half of credits to former wife; frequent flier credits were nontransferrable in a sense and could not be liquidated for benefit of debtor’s estate, so that trustee would likely abandon any interest in credits and debtor could assert an interest in them, if obligation to transfer them was found nondischargeable.

In Re Ellis, 149 B.R. 927 (Bankr. E.D. Mo. 1993)