341 in a few days and I have a question

[capt859]

I have been reading the boards for the past week and I noticed that a few people mention Paypal. I didnt know Paypal was a bank account so I didnt put it on the paperwork and I have a zero balance right now anyway. But over the past couple of months I had money on it, over $600 at times and its long spent. Have any of you guys forgot to mention Paypal and the Trustee ask about it at the 341 hearing. I hadnt transfered the money to my bank account, I used it to buy some stuff on Ebay, so if there is no paper trail to my bank account would there be anyway for the Trustee to know that I have Paypal. I honestly hadnt thought about it till I read the posts on this board, I always presumed that Paypal was just a money exchange/transfer system and not a bank. TIA

[liz417]

Hi and welcome to this board

I actually forgot to list my Paypal account (didn't even think of it at the time) and my Trustee never asked anything

[capt859]

Hi Liz, thanks and congrats on your discharge

[AngelinaCat]

Hi Capt859: we treated and still do treat our PayPal account just as you describe. Other than one time when a sum of 5K was transferred into it and then out the next day. It never has any money in it, except when we purchase something on eBay, and put money into it to pay for that item, and that is it. It has a zero balance about 99% of the time, so we did not list it.

Other people do list it, and for them it actually may work as another bank account.

Now having said all that, we had an attorney supposedly educating us in the BK process. *HAH* Not at all.

We filled out all the paperwork asked of us. But she and her assistant never asked us if we had any type of other accounts involving money anywhere. And we were too stupid to know to tell. So I guess this did not make a difference.

Other things did later on. For reference, we hired this attorney Aug. 2006, filed 12/28/2007; 341 2/07/2008; Discharge 8/13/2008. Still awaiting Closure.....

[backtoschool]

I forgot to list my paypal account on my schedules, but I just use it for paying for the occasional item on ebay. It is a pass-through account tied to my real bank account and I never keep a balance in there. My lawyer said that it would be a waste of money to amend the petition and add the account since the trustee could care less about a zero balance pass-through account.

Money spent on non-luxuries is not an issue. And an account with zero balance in it is not going to interest the trustee.

[LSUTiger32]

Add me to the list of people who forgot to include PayPal and add me to list of people who never got asked a question about it!

[TeacherMomma]

No questions about it.

[doingpoorly]

I listed my paypal account in the packet that I filled out for the attorney. They were very good at getting everything correct when they transferred over the info from my packet to the actual bk documents except my paypal account wasn't listed. I asked the attorney and he said that it wasn't needed.

[anmartin31]

Thanks everyone I appreciate all the responses

[whipster1]

Paypal seems more of a pass thru than a real account, unless you buy and sell a lot on ebay. I didn't list mine either.

[2manybills]

We got no questions about paypal.

[backtoschool]

Paypal seems more of a pass thru than a real account, unless you buy and sell a lot on ebay. I didn't list mine either.

I agree. Paypal is a pass thru account. It doesn't earn interest and Paypal is not a bank.

[aljohnson007]

If you get selected for audit and there is any transaction of $500 or more on you bank statements, you will have to write an explanation. If it was for purchase of items on ebay or elsewhere, it's ok but you would just have to state it. Don't think it is something that will cause a problem.