Help with paypal accounts and check cards

[sparkle12]

I'm going to be filing soon and I am unsure about a few things. I know that you have to show bank statements, do you also have to show paypal statements? I am paid sometimes by my clients through paypal, the balance isn't large, and usually after I'm paid the money is transferred to my bank account or I use it for purchases.


My other question is, I haven't used a credit card in years, but I have made purchases with my check/debit card, does that fall under what I heard, about making purchases in the last 90 days, these purchases weren't large, probably, like, $50 here, $30 there, etc.

Any advice I appreciate, thanks

[StartingOver08]

I don't really know about paypal. But I had to supply ALL statements, including savings, brokerage, checking etc.

As to your debit card, this is considered cash and is not a charge/credit card. They will reveal your spending habits, but you can keep using your debit as long as the account has funds in it!

[sparkle12]

Thanks. Do you think purchases in this amount before the 90 days is something that would be against me?

[WorkingItOut]

I disclosed my paypal account and printed off reports to show the deposits and expenditures. I have a side business and receive most payments through paypal, and so my lawyer wanted to see it. I am filing in a couple of weeks, so I'm not sure if it was just my attorney who wanted to see it or if the trustee will want it or what.

And no, your debit card is not a credit card and doesn't fall under the same rules.

[sparkle12]

Thank you. Would you happen to know about living arrangements? My situation is a little different. I live with someone's house who is not a relative, but they pay all the bills and utilities. Would I fall into a household of 2? Also, would they need this person's income?

[jktrading]

My attorney hasn't even asked for bank statements, and doesn't seem concerned that it will be an issue. I don't normally carry a large amount, but I was concerned about having my rent money in my account, and it being taken. My attorney told me not to worry. I'm in southern CA.

Unless you're keeping money in your paypal account, I wouldn't even be concerned. I for one, always transfer my paypal balance directly into my bank account, the same day payment gets into paypal. You can always provide that information later if it is asked for. The main rule is to not hide, and not to lie, and you'll be fine.

Your ATM/Visa card is your bank account, so that doesn't count in the 90 day rule.

From what you've said, you would be a household of 1. You, your spouse, and children would only be counted in a "household."

[Doghouse]

From what you've said, you would be a household of 1. You, your spouse, and children would only be counted in a "household."

Household is not limited to spouse and children only. I have a parent living with me that I provide most living support and I am a household of 2. One year I supported both parents for the year and filed as head of household in a household of 3. It is possible to also support siblings and file as household of whatever.

[justbroke]

Thank you. Would you happen to know about living arrangements? My situation is a little different. I live with someone's house who is not a relative, but they pay all the bills and utilities. Would I fall into a household of 2? Also, would they need this person's income?

First, for purposes of the means test you would be a household of 2. However, the other household member's income will come into pay inasmuch as they pay for "all" the bills.

That is, you couldn't claim a rent/mortgage expense, unless you included that portion of the household member's income which provides support... like paying the rent/mortgage expense.

[sparkle12]

Thanks, justbroke,
so then in my situation, it would be a household of 2, and the only part of their income that they would need is what they pay toward living expenses? Just want to be clear on what you said

[justbroke]

Thanks, justbroke,
so then in my situation, it would be a household of 2, and the only part of their income that they would need is what they pay toward living expenses? Just want to be clear on what you said

Put simply, the non-debtor household member's income must be included in the debtor's income if it is used for household expenses.

Example; debtor doesn't pay the rent, his roommate does. The monthly rent is $500. The Debtor must include the $500 in his monthly income calculation. The Debtor would also claim a rent expense of $500 in the means test.

... the contribution must be included in the debtor's CMI only to the extent that the contributions were used to support the debtor or the debtor's dependents and that the remainder of the contributions are excluded...

HHM, a moderator on this forum, recently wrote that it may be the opposite of what I wrote.

For example, say the rent is $500/month and your roommate contributes $500/month towards the rent. You would put $0.00/month for your rent. You would not modify your income to reflect this contribution.

For those reasons, I'm not sure what the proper way to do this. I would assume that you would do it the way HHM suggests.