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.
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.
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.
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.
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.
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.
- USCourts.gov: Bankruptcy Basics
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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.