Paypal Debit Card and Bankruptcy Petition

[debee]

..i have never heard anyone being asked about their "paypal" account...

Here's a thread that talks about paypal and describes a situation where someone was asked for their paypal & ebay records. It's not the thread I was thinking of when I posted earlier, but it'll do.

http://www.bkforum.com/showthread.php?22437-Ebay-and-Paypal

Although not relevant to LynnD's situation, it's interesting to note that depending on how a person structures their paypal account, they can also receive a 1099-div at year end. That sort of paper trail is easy for a trustee to sniff out.

This second thread also references trustees asking for paypal records & the whole perjury thing (although since OP has no money, no biggie.):

http://www.bkforum.com/showthread.php?45863-How-would-a-trustee-know-if-you-had-a-Paypal-account&highlight=paypal

eta: Ultimately you just want your case to discharge and close as fast as possible. Anticipating what might be required of you (like paperwork that might be asked for) and having it ready is just good prep and will prevent unnecessary delays. Good luck!

[tobee43]

Hi Tobee..

The balance isn't high at all and on the day of filing it was 0. I usually pull the money off but will use the card at times. What concerned me was he asked for my bank statements--which I included and then I thought.. well would he want my papal statement as well? But if i include my papal statements will he be upset and wonder why I didn't list it on the petition.

What I did was just print off the income statement from where I work. If he requests the paypal statement, I can have it ready and take to the 341 in case?

I'm not even close to any cut off's. I made a whopping 1300 in Dec and an additional 1200 in child support but my rent alone is 1100 and then expenses leave me with $11 per month which is really not accurate because there are ALWAYS more expenses than money. My bank account had $2.44 day of filing. I would think he'd see my case and be like 'oh no hope here of finding anything' and not even waste his time looking deep. Clearly I don't make enough money but I still don't want to mess everything up by one stupid thing.

again, i would not worry about it at all.........

that's just like saying if you pay a pre paid debit card you have to list it when the balance is empty....you do not...

i used paypal for rent payments as well as other payments...however, all funds were transferred directly from our checking account which is of course connected to paypal......so those that really don't understand paypal don't get that...it does in fact show up on your checking account...that's when you transfer in and out...

also..i have never heard anyone being asked about their "paypal" account...i have sold on ebay for over 12 years....but it's all a loss...BIG time.....when i had to sell my clothes for food and my blouse still had a tag of $60 on it and i sold it on ebay for $10....it's a loss...NOT a gain....

also....you can bring a "printout" to the 341....i would not bother...i never kept more than $2 in there and all monies were transferred into the checking account which the trustee already has...

also, it's the same principle as a gargage sale....are you going to be asked for all the transactions...i don't think so.

many people LOVE to frighten others i have no clue why....but they just do and many of them haven't even filed bk yet...but just poke around and comment and scare people...i'm sorry for that! really.

the bottom line is always be truthful......a lie is the only thing that come back and hit you .....and IF on the day of filing it was zero..i would not worry at all. i know how checking account had approx 1600 in it ON the day of the 341 but on the petition it had $150........were we lying.......absolutely NOT...that was before rent, utilities etc., where paid...we pd ALL bills via our checking account and it was consistent for over a year....and actually after we pd or if we had to pay all our bills at one time we would have been in the negative...


so don't worry yourself sick over this...by the way my new debit card JUST came in the mail last thursday!


oh!!!!

Tom: My first thought was 'paypal is not a bank' and I'll bet the trustee thinks along the same lines.

tom's got that right!!!

[debee]

LOL @ Tom!

I would take the statement to the 341 as well. Someone else on the forum was asked to produce their paypal account record at their 341. I believe in that case the trustee knew they'd been selling things on ebay. He also asked for their ebay records. Anyway, if you have your statement with you, you'll be ahead of the game. And nothing to fear since there was nothing in it on the day of filing and your records can prove that if need be.

[tcreegan]

Hi Lynn,

I think this falls under the 'not worth bothering about' file. You listed the income and had no money in there on file-date, it doesn't alter your BK, you're in the clear. I favor taking everything to the 341, better safe than sorry. But I also favor the "don't ask, don't tell" policy, if the trustee doesn't ask about it, don't mention it. My first thought was 'paypal is not a bank' and I'll bet the trustee thinks along the same lines.

if i include my papal statements will he be upset ...not sure, how does he like the Pope...?

Sorry, couldn't pass that one up...

Tom in Colo

[LynnD]

Hi Tobee..

The balance isn't high at all and on the day of filing it was 0. I usually pull the money off but will use the card at times. What concerned me was he asked for my bank statements--which I included and then I thought.. well would he want my papal statement as well? But if i include my papal statements will he be upset and wonder why I didn't list it on the petition.

What I did was just print off the income statement from where I work. If he requests the paypal statement, I can have it ready and take to the 341 in case?

I'm not even close to any cut off's. I made a whopping 1300 in Dec and an additional 1200 in child support but my rent alone is 1100 and then expenses leave me with $11 per month which is really not accurate because there are ALWAYS more expenses than money. My bank account had $2.44 day of filing. I would think he'd see my case and be like 'oh no hope here of finding anything' and not even waste his time looking deep. Clearly I don't make enough money but I still don't want to mess everything up by one stupid thing.

[tobee43]

i never listed my card...really.....

but it you listed the income you should be fine...and if are that concern, since you did not mention the amount, but if it's large...you can just file and amend your petition and add the statements from paypal.

[LynnD]

I think I screwed up. I didn't list my paypal debit card on my bankruptcy petition and one of my clients pays me on it. I listed the income but didn't list the paypal card? I was planning on printing the statement to send to the Trustee with my bank statement but do I need to ammend the paperwork to include this card?

Basically what happens is he puts my money into my paypal account and I have a debit card so I usually just withdraw the cash or use it as a debit card for purchases.