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I had unused credit (gift certificate) at a spa that closed - bankrupt. How can I get that $$ back?

My mother-in-law gave me a gift cert to the spa for my birthday, but before I could use it, the spa closed due to bankruptcy. Is there any chance we can get that money back? How would I go about it?

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Attorney answers (2)

Reputation Level 15
It is unlikely that you will recover any of the money as the gift certificate basically places you in the position of an unsecured creditor.
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Reputation Level 20
No. You're holding an obligation of the company. The company filed bankruptcy likely because their debts overwhelmed them. The goal of a bankruptcy by any filer is to have as many of their debts discharged as possible. More likely than not you are out of luck.

Three potential exceptions: (1) Sometimes, a company like a spa or a gym going out of business will sell their memberships or outstanding gift certificates to another entity, it gives the seller some fast cash and it gives the buyer a list of potential new customers. Watch the local newspapers. (2) Sometimes in a Chapter 11 a court could allow the membership list to be sold, watch the notices in the newspapers, (3) Often when a gym or spa goes out of business in a town where there are other businesses like that, the other ones will have an advertising campaign to get the defunct company's customers by honoring the memberships or gift certificates. Keep your eyes opes for such a deal.
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