ebay and paypal question

[4ever]

I know this seems trivial but we live in a very small town where the only "real" store we have is a Walmart, so the wife buys things for cheap on ebay. Like a $10.00 video game or a cheap shirt. Is this going to be much of a problem before and after filing BK? She would like to get some things from there now for Christmas and before we file. What can they do, take the used video game back from us? Since our paypal is connected to our bank account, the money comes out of there and not on a credit card. Is anyone on here still buying from Ebay after filing?

[tobee43]

i have been buying and selling on ebay since the second week they opened their windows...LOL...or site...and continued while and thru...and after...what i have sold was at below cost so i lost money...and what i have purchased were items i needed...such as clothes etc.

as with you, it was via my paypal account via my bank account and on every single statement we submitted. the trustee didn't question it...not to say yours will not...but i'm just letting you know the experience we had with ebay and paypal...i pay even my rent via paypal...

[drowning123]

From what I've read, if you spend like $200 a month on clothes and entertainment, that shouldn't cause any red flags with the trustee. You guys should be fine. The stuff you buy aren't luxury items.

[mtngirl47]

I have had an Ebay business for many years...I buy estates and then resell. I also sell on consignment for folks. Plus, we sold a lot of personal items on Ebay right before filing. I use Paypal like a bank account. Provided lawyer with statements. Trustee actually joked about Ebay at our 341 when he asked if we got a good price for one of my husbands big toys.

[4ever]

Thanks. This should make her very happy. And it wouldn't be through a credit card. So that should make the trustee happy.

[empowered]

I was wondering whether I should have included my own Paypal account in my Chapter 7 paperwork... not that it had any money in it.

Anyone got the skinny on these online accounts with entities that function more or less as banks?

Thanks.

[tobee43]

i'm a bit confused....if your talking about a paypal credit card...YES...

but if you are speaking about your regular paypal account and it's tied into your checking account then the matter is moot....i did not list mine...every purchase or sale was tied into my bank statements which were submitted to the courts...

[empowered]

Hi tobee43.

Good point that it would be moot to list it since it is tied to one's bank account anyway. While I didn't list it, I began to have some anxiety over whether I should have done so since I think that Paypal may be considered a bank in its own right....

Thanks for the clarification.

[tobee43]

glad to help...you dont need to worry, i'm certain you did everything just fine...

[keptdigging]

I just filed with money in my PayPal. I just listed it as an asset like any other account (it's giving my attorney a bit of a challenge though since they don't seem to have 'account numbers' and their printed statements off the web don't list the account name etc).

Not sure why these are even questions: if there's money in your pay pal it's an asset, if not then it isn't. (But it can't hurt to list it even if it's empty.)

And why would buying from ebay be any different than buying from Walmart? Stick to necessities, keep records... the usual.

===

The reason I left money in my paypal was I felt more comfortable having it spread out between my bank and my paypal... just in case something funny went on with either of them. (Though I already knew to avoid the dreaded wells fargo and all banks I owe money too... and theoretically my filing stops dead the lawsuits chasing me.)

[empowered]

So then, you're saying that your attorney did feel it was proper to list that account?

It doesn't seem to have mattered for me so far -- I don't keep money in my PayPal account. It might have been more relevant for you since it sounds like you maintain a balance there. But it would be great to know if that's why your attorney wanted to list it. The request for information about financial accounts in the paperwork is not limited to accounts that have positive balances so far as I can see.

I didn't need to worry much about receipts in my Chapter 13 and haven't worried about that much for my pro se Chapter 7 either. That might be more useful for less usual expenditures that are more likely to be questioned.

[keptdigging]

My attorney told me I was supposed to list "any asset I held anywhere in the world... or beyond." And an account with credit balance is most definitely an asset. I don't see the need to list it if you don't have any money there. But that question never came up in my case because there was definitely money there. My attorney didn't seem real familiar with paypal so I'm guessing it doesn't come up much.

[tobee43]

keptdigging...i do suppose if you had money in the account you wanted to claim it....i also, NEVER ever kept it there...it went from paypal TO my checking account and those transactions were reflected on my bankstatments to the trustee....so ANY monies that went IN to paypal also went OUT to my checking account.

but if you keep a ton of money in there i would suppose you have to claim it...just as any other asset...or if you have a paypal credit card i would think that would also need to be listed an unsercured debt.