Borders Gift Cards... Worth NOTHING.

If you are holding on to a Borders gift card...you can safely deposit it in the trash, as the paper is worth more than the balance on the card. Sad but true, a bankruptcy judge ruled that Borders does NOT owe a cent to the gift card holders who didn't redeem their cards before last year's deadline, when the mass retailer closed for good. 

Those who still have gift-cards from the retailer -- opposed the ruling, arguing that Borders "did nothing" to reach out to their gift-card holders before they shut down last September.

Judge Martin Glenn of the U.S. Bankruptcy Court said “Gift cards, as their name illustrates, are not intended to be used by the purchaser but are instead intended as gifts, so even if the debtors were able to identify the purchasers of the gift cards, they would have no way of tracing the ultimate recipients,” he wrote in his opinion. “And, in fact, the gift card holders, by their own admission, received their gift cards as gifts. Therefore, the debtors had no way of tracing their identities.”

Clint Krislov of Krislov & Associates in Chicago, who is representing the gift-card holders, expressed disappointment with the judge’s ruling, which he expects to appeal.

“We will pursue this further,” he told Bankruptcy Beat Wednesday.

More on Borders Bankruptcy & Gift Cards....

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Posted in bankruptcy beat , Borders Bankruptcy , borders gift cards , retail bankruptcy

Sapp Sells Shoes to Pay For Bankruptcy

 Bankruptcy lawyers except a variety of payments - but Warren's Sapps shoes aren't going to pay the bill. The ex-football star was hoping collectors or fans would be willing to shell out some cash for his collection of 215 pairs of size 15 shoes.

 

According to the Daily Mail, Sapp auctioned off his entire collection of Air Jordans on eBay to try to recoup money for creditors in his bankruptcy case. How did the Air Jordan Auction go? The plan to support Sapp's bankruptcy was a bust -- The highest bid was $16,800 - which didn't meet the auction's reserve.

The sale wasn’t exactly a success, though—the highest bid of $16,800 didn’t meet the auction’s reserve for the collection. 

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Posted in ex football bankruptcy , warren sapp bankruptcy

Daughter Wins Gold, Mom Files Bankruptcy

It was 2 gold medals that made one U.S. gymnast a celebrity overnight. Gabby Douglas made international headlines upon capturing the second gold and the hearts of many. The American sweetheart, tumbled her way to the top of the podium twice during the 2012 Olympic Games, but the gymnast’s mother isn’t quite as fortunate.

Reports show Natalie Hawkins filed for Chapter 13 bankruptcy in January with nearly $80,000 in debt. According to the Associated Press, Hawkins said the bankruptcy was her story and she wasn’t embarrassed about it. “It shows that even though I didn’t like to have to do it,” she said. “I’m glad there was something there for me to be able to protect my home.”

According to WSJ - Hawkins’s latest bankruptcy wasn’t her only one; a previous Chapter 13 case was dismissed last year for failure to make payments in a bankruptcy plan. Hawkins isn't alone. Many Olympians' parents struggle, noting that it extremely expensive to support their children's dreams.

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Posted in Celebrity Bankruptcy , Chapter 13 bankruptcy , gabby douglas , olympic bankruptcy