Paypal and a Paypal Credit Card

[rainbow]

Hello, I've been searching the site most of the day but can't find the info I need answered, at least not anything current enough to be relevant. I've been running an ebay business for over 5 years so my income in just the money in my paypal. I also have a paypal mastercard that I owe over $3500 on and am going to be filing chapter 13 within the next 2 months but I'm scared that paypal will close my account because the mastercard balance will be included in my bankruptcy. If they close my regular paypal I will not have any income because ebay buyers expect to only pay using paypal, I went 2 weeks with my paypal being locked up last year and lost over $400 in business because nobody wanted to pay using my merchant credit card account instead. Has anybody included their paypal mastercard in a bankruptcy in the last couple years and still been able to keep their paypal open without issues?

[LadyInTheRed]

You should count on the master card being closed. I have a basic PayPal account that wasn't affected by my BK at all, but I did not have a PayPal credit card. You may want read the PayPal account agreement and credit card agreement and see if it helps.

[rainbow]

I know the credit card will be closed, I'm completely ok with that. I've read the agreements but I guess I'm just not understanding them. This is what I could find on their site:
PayPal may terminate this Agreement, effective immediately, (i) in the event of insolvency , receivership or voluntary or involuntary bankruptcy , or an assignment for the benefit of your creditors, or in the event that a substantial part of your property is or becomes subject to any levy, seizure, assignment or sale for or by any creditor or governmental agency without being released or satisfied within thirty days.
This arbitration provision shall survive: i) the termination of the Agreement; ii) the bankruptcy of any party; iii) any transfer, sale or assignment of your Card, or any amounts owed on your Card, to any other person or entity; or iv) expiration of the Card. If any portion of this arbitration provision is deemed invalid or unenforceable, the remaining portions shall remain in force.

[justbroke]

That reads as "just" an arbitration agreement. That would be for disputes between you and PayPal.

[LadyInTheRed]

I'm guessing that those are two excerpts from the agreement and that the second part is an arbitration clause.

[tissa]

I had a PayPal MasterCard and a PayPal account, when I filed I think I owed about $2000 or so on the MasterCard. I don't run a business but I have Netflix and Hulu subscriptions with PayPal. So I switched the Bank Accounts that are attached to the PayPal account which was a hassle I finally had to email them and do a Chat to get the closed bank account off. But since I filed I haven't had any problems, the Hulu and Netflix subscriptions are still there and I've used the Account to purchase a few small things online since filing without any problems.

The Paypal MasterCard was closed and transferred to some collection agency before I filed.