ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Can I Keep My Paypal Account After Bankruptcy?

Updated on December 16, 2013
Source

Since 1998, sending and receiving cash over the internet has been made pretty easier thanks to PayPal. Over time, it has become popular as a secure and reliable means of paying for items online. Since 2002 it has been primarily used to either accept payments or purchase items. However, PayPal is not solely restricted to the above use only; millions around the world are using it today for their daily transactions.

PayPal didn’t begin as the PayPal we know today. It came into existence when X.com, an Internet financial services organization set up an on-line funds transfer called PayPal. Later on, x.com acquired Confinity. This gave the company the competitive advantage to market PayPal and make it acceptable to the whole world. Later on, it was decided that the company would terminate all other internet business and only concentrate with online money transfer. This led to the change of the company’s name from X.com to pay pal. The renamed organization was offered for trade in 2002. E-bay acquired PayPal during the same year making PayPal the first ever dot com company to be offered publicly for trade in the US.

To this end, many still don’t view PayPal accounts as property to them. In some cases individuals will even forget to list it as part of their assets. But individuals need to start taking caution especially when it comes to bankruptcy. Once you are declared bankrupt, the law requires that you declare all assets, sources of income as well as places you have kept your money. This includes anything of asset nature on the earth or below the earth. This includes the banks accounts or online accounts such as PayPal. Some individuals will choose not to disclose amounts in online accounts (PayPal); this will only lead you to more trouble. If either the court or your creditors come to discover this, you would have some additional charges to answer.

While filing for bankruptcy, funds in your PayPal form part of your assets. It is therefore very critical that you have a six months statement of your PayPal account. This is a requirement, whether your account had any changes over that period or not. The statement should capture all the details up to the time when your bankruptcy case was filed.

On reading this, one may think that the six month period transaction history isn’t that necessary. This is a requirement of the law. Remember your attorney need to review all financial transactions over the six months prior to the filling of the bankruptcy case. This provides an overall financial history showing the amount received through your PayPal account over the six months. On the other hand, for audit purposes, the six months PayPal account statement will enable the auditor to carry out his duty with good levels of accuracy.

On the schedule B, section 2 of the bankruptcy form you are required to list the following accounts, savings and other financial accounts, savings and loans, certificates of deposits and shares in bank building and loan, thrift, credit unions and homesteads association. From the above, you are signing that you have listed all your assets appropriately.

It is considered beneficial for one to disclose his/ her PayPal account for bankruptcy purposes. Unless the PayPal account has been indicated as the primary place to keep the funds, such disclosure could be considered when factoring how one will pay back the debts. It is worth noting that, where you provide the PayPal account as your primary account, the same could be used when offsetting one’s debts.

If you have ever owned a PayPal account, it is vital that you disclose the same to your attorney. That is, any PayPal account that was opened prior to the filling of the bankruptcy.

On closer analysis of the PayPal user agreement, you will note that the company assures you of non- disclosure of your account during bankruptcy. However, this doesn’t give you a reason not to disclose your PayPal account. You still need to disclose your accounts. Disclosing all your assets during a bankruptcy case gives you more power over your case. For audit purposes, you will be better placed to answer anything pertaining to any of your properties. On the other hand, you will overcome possible penalties that could result from non- disclosure.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)