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.
