PayPal has become a popular way of sending and receiving money over the Internet, but it cannot be forgotten when declaring bankruptcy. This will only lead to more trouble.
History
PayPal became popular after its founding in 1999 as an easy and secure way to pay for items on online auctions sites like eBay. It has since grown to one of the most popular ways to send and receive money via the Internet.
Bankruptcy
When you declare bankruptcy, you are required by law to declare all sources of income and places where you have money. That includes bank accounts and online accounts like PayPal.
Significance
If you choose to not declare the money in your PayPal account and if the courts or your creditors find out about it, you could face additional court dates and criminal action if they decide you did it on purpose to hide money.
Benefits
It is likely the money in your PayPal account will not be much of a factor in your bankruptcy unless you use it as your primary place to store your funds. It may be used in factoring how you will pay back your debts.
Considerations
If you need to pay a monthly payment for your debts following your bankruptcy, then you may choose your PayPal account as the primary way to pay that debt.
References
- PayPal. "Data Encryption." Accessed Feb. 11, 2020.
- PayPal. "PayPal Bug Bounty Program." Accessed Feb. 11, 2020.
- FTC. "How to Recognize and Avoid Phishing Scams." Accessed Feb. 11, 2020.
- FTC. "Tips for Using Public Wi-Fi Networks." Accessed Feb. 11, 2020.
- Evergreen National Bank. "Fraud Prevention." Accessed Feb. 11, 2020.
- Consumer Financial Protection Bureau. "Fraud and Scams Key Terms." Accessed Feb. 11, 2020.
- PayPal. "Resolving Disputes, Claims, and Chargebacks." Accessed Feb. 11, 2020.
- Federal Trade Commission. "FTC Advises Consumers Not to Use Wire Transfers for Online Purchases." Accessed Feb. 11, 2020.
- PayPal. "How Seller Protection Can Help Support Your Business." Accessed Feb. 11, 2020.
- PayPal. "What Is FDIC Insurance and How Does It Work?" Accessed Feb. 11, 2020.
- FDIC. "Prepaid Cards and Deposit Insurance Coverage." Accessed Feb. 11, 2020.
Writer Bio
Brock Cooper attended Illinois Wesleyan University in Bloomington, Ill. He was a reporter for seven years with a daily in Illinois before branching out into marketing and media relations. He has experience in writing everything from press releases to features on a variety of subjects and forums. His work can be seen in NewsTribune newspaper, Chicago Parent magazine and several websites.