What would happen in a situation where a business owner takes out an expense, declares bankruptcy, and then later gets that expense refunded after the bankruptcy wiped out all debt on the credit card?
Would it get sent to the person who owned the card (bankrupted person) or would the credit card company keep it? Is there an amount of time after bankruptcy during which any incoming money to that closed credit card would be seized, or is anything ever refunded down the line permanently theirs?
Life Sciences and Biotechnology Attorney
It would probably be part of the debtor's bankruptcy estate. I'm guessing it wasn't disclosed in the petition because the debtor didn't know about it. This is something the debtor should talk to their attorney about because they probably need to disclose this to the Trustee and exempt it if there is any room left.
The information provided in this post is not "legal advice." Rather it is general information on common legal issues. If you have questions concerning your specific situation, it is always best to consult an attorney in your area.
4 lawyers agree
There is something very disconcerting about this question.
Ultimately, this "business owner" would need to discuss the issue with his/her attorney. There are a few ways this situation can go and there is simply not enough in the description to even speculate on what would happen. To many "if this," "if that", scenarios are raised by this question.
You need to ask your lawyer this question. Who is reimbursing the expense? If the employer is doing it, you may have issues with your employer. I would say that this is an asset and must be disclosed and exempted for the bankruptcy.
2 lawyers agree