115 – What Happens to Air Miles Points if You Go Bankrupt?

Air Miles has been in the news a lot lately about their new points expiry policy. Maybe it's because of the media attention, but we have had a lot of potential clients ask what would happen to their Air Miles and other loyalty points if they file bankruptcy?

Here is a short summary of what would happen under bankruptcy law:

Section 67 of the Bankruptcy & Insolvency Act says that a bankrupt's assets include "all property wherever situated at the date of the bankruptcy".

What that means is if you own it, it's property. While there are bankruptcy exemptions for things like an inexpensive car, household goods and a portion of your RRSP, there is no exemption for Air Miles or any loyalty programs.

Confused? We explain more in today's podcast.