Can creditors seize PayPal accounts?

[GoneBust]

That is a big question that I have. Can anyone answer that question? Has anyone here ever had it happen?

If not, does that mean I could have PayPal send me checks in the mail instead of using direct deposit and go cash them at a bank to avoid using my checking account?

I'm trying to avoid bankruptcy (if possible), but I have a few judgments pending. The last thing I need is for one of the creditors to get access to my chcking account or my PayPal account.

[keepsmiling]

A Paypal account is an asset like any other bank account. It would be fraudulent to leave it out.

[sh9730]

I think what he is asking is if in an attempt to AVOID BK - his creditors could go after his paypal accounts for garnishment.

My initial thought is yes - if they knew about them.

And as the other poster says - if you do file BK you do have to disclose any assets in the paypal account.

[GoneBust]

The PayPal account is my only source of income. I sell web design services on eBay, and all my income comes through PayPal.

I can't seem to get a straight answer as to what assets creditors can seize in a judgment and when. I wish there were some cut-and-dry answers about assets and/or bank accounts being seized after a judgment is granted. Is there anywhere that I can read up on stuff like this? Does it vary from state to state?

[Peeps]

I hate to sound flip by stating the obvious (it's not my intent), but couldn't you just contact Paypal and ask if they ever do this to individual accounts and under what circumstances would they process a judgment? I'm not sure if you'll be able to get a cut-and-dry answer in this forum... you might need to go to the source.

Since they're a payment processing service and not a bank, they might live by a whole different set of rules when it comes to how accounts are handled. Best of luck.

[shark66]

PayPal account can be levied in the manner very similar to the ones used for "standard" bank accounts.

That being said, a judgment would need to be domesticated in CA for that to happen.

How much money are you expecting a judgment for?

Good luck.

[GoneBust]

PayPal account can be levied in the manner very similar to the ones used for "standard" bank accounts.

That being said, a judgment would need to be domesticated in CA for that to happen.

How much money are you expecting a judgment for?

Good luck.

I'm not sure what you meant when you wrote, "...a judgment would need to be domesticated in CA for that to happen." Can you clarify?

I have about $165,000 in debt (mainly business credit cards and an SBA loan) that I stopped paying on back in 2009. My home payment is behind 4-5 months and my vehicle is current.

[Flamingo]

Paypal has a whole section in their site which describes your account and goes into details about it (i.e., legalities, etc.). What paypal is is a custodial account which needs a bank source to draw from or send funds to. It is easily traceable. Review that section on the PayPal site which all should do who have accounts with PayPal and maybe the info you are looking for is in there or give them a call.

[shark66]

A judgment issued in IL can't be used to levy a CA-based account (PayPal) without being domesticated in the latter state.

Having said that, any collection attorney with a brain would look for a PayPal account if they get a judgment against you, and might get the account frozen even without domesticating the judgment. Make no mistake, PayPal will reveal all the info they have on you (checking account, CC numbers) in that set of circumstances, since it has happened to someone I know.

With the amount of debt that you have I'd be looking into filing yesterday, but that's me.

Good luck.

[IamOld]

I know this is just venting, but it (still) never ceases to amaze me that PayPay-of which YOU are a customer - will bend over backwards to creditors and not for its own customer. That of course clearly shows who runs the show...

[tobee43]

flamingo has excellent advise here...call them if you can't locate the section that explains in detail the terms of your account.

we have had a paypal account since it's inception...approx...i want to say 11-12 years...now...however, it's connected to our checking account so it's tractable for the world to see.

we paid our rent, many other things via paypal as well. so if you use it like we do, i would proceed cautiously and as flamingo advises...give them call...just to make sure where you stand

[debee]

Once they get the judgment, next step is recovery. They look for you and they look for your assets. They can absolutely go after your money in paypal. If you put your money in a box under your Mom's bed they could go after that too. Sorry.

[tobee43]

Once they get the judgment, next step is recovery. They look for you and they look for your assets. They can absolutely go after your money in paypal. If you put your money in a box under your Mom's bed they could go after that too. Sorry.

deb...LOL!!! i'm just thinking about the bk court people going to look under my mom's bed for money!! just the vision brings me to laugh...but NOT really funny at all.

actually, one cannot go into some other person's home unless they go through all the legal processes before they bust into a relatives home thinking you are hiding assets for you. you'd at least get some notice one would hope!!!

it's always bests as most of us agree to BE HONEST!! it's so much easier to tell the truth...lies are so hard to remember. unfortunately, it comes to a point that we just have to face the fact and put our financial lives out in the open for the courts to see.

[debee]

actually, one cannot go into some other person's home unless they go through all the legal processes before they bust into a relatives home thinking you are hiding assets for you.

Uhmm. Yeah. All recovery actions are legal processes. No ninjas.

[tobee43]

Uhmm. Yeah. All recovery actions are legal processes. No ninjas.

duhhhhhhhh....yeap...and they usually take longer than a day or two. so i'm thinking i don't know many people who had a trustee's rep....burst into someone's mom's house and look under their bed..