Bankruptcy and Paypal account

dipshit123456

I have a paypal account through which 90% of my income comes in, on a website I run.

I think I'm in a position where I'm going to have to declare bankruptcy, and I understand most of what that entails.

But what'll happen to my paypal account?

Without it I basically lose my ability to make any money.

It's currently linked to my bank account, which in itself is already a Lloyds "basic" account - no overdraft etc.

What's the best course of action, or am I screwed?

banksshouldworry

I went BR back in Jan '14 and both of my PayPal accounts (one business and one personal) were totally unaffected. The BR forms I completed at the time never asked for PayPal account details and my OR never asked about them - and I didn't mention them at all either.

Like you I was worried that my PayPal accounts would get closed as there were many varying stories at the time. I seem to remember some people quoting part of the OR guidelines saying that PayPal accounts get closed. Some said they got their PayPal accounts closed and others said there PayPal accounts went untouched too.

All I can say is that both of my PayPal accounts thankfully remained open so I could continue to process payments online unhindered.

By the way, I opened a Barclays basic account on the day of my BR and then used the new account details the main bank account details in PayPal and deleted the old pre-BR bank account details as those old bank accounts were being closed anyway.

It's never made much sense to me why they would even consider closing a PayPal account as it's such a good way of allowing the generation of income. And PayPal is like a middle-man on the payment chain between your bank account and your customer's bank account.

Maybe policies have changed since my BR but I hope you get to keep your PayPal account too.

My advice would be to not mention anything about your PayPal account unless actually asked by the OR. And set up a new basic account that you know will remain open during your BR period and then get your PayPal payments flowing into the new account.

- banksshouldworry

TheGardener

I never mentioned my paypal to the OR (it didn't register to me that I should) - but I'm not a business customer and I didn't have any cash in my account. The OR would have seen the Paypal transactions on my bank statements and I sold loads of stuff to raise the BR fees so it would have looked like I used it more than I actually did. I remember reading somewhere that its in the paypal T&C's that the account would be closed if you were insolvent but that may be just business accounts. Trying reading paypals business terms T&C's?

owlet

TheGardener wrote: »

I never mentioned my paypal to the OR (it didn't register to me that I should) - but I'm not a business customer and I didn't have any cash in my account. The OR would have seen the Paypal transactions on my bank statements and I sold loads of stuff to raise the BR fees so it would have looked like I used it more than I actually did. I remember reading somewhere that its in the paypal T&C's that the account would be closed if you were insolvent but that may be just business accounts. Trying reading paypals business terms T&C's?

Exactly the same as me. That saved me writing it all out lol.

It didn't occur to me either to declare it because no money is ever held in mine. It's just a middle man that money passes through.

Canonfodder

Hi. Does anybody else have any more information or experience on keeping your Paypal account please?

jphillips25518

I have civil action award against me £70,000 !! defamation / Slander award from a bully, plus costs, so with my already credit card debts and loans (all unsecured) of £58,000 time to bankrupt, then I'm free from paying this bully his award And clear my debts fantastico

boo_star

jphillips25518 wrote: »

I have civil action award against me £70,000 !! defamation / Slander award from a bully, plus costs, so with my already credit card debts and loans (all unsecured) of £58,000 time to bankrupt, then I'm free from paying this bully his award And clear my debts fantastico

What has this got to do with PayPal?

Unless they obtained an award for £70000 which nobody else picked up on?

DCFC79

Canonfodder wrote: »

Hi. Does anybody else have any more information or experience on keeping your Paypal account please?

jphillips25518 wrote: »

I have civil action award against me £70,000 !! defamation / Slander award from a bully, plus costs, so with my already credit card debts and loans (all unsecured) of £58,000 time to bankrupt, then I'm free from paying this bully his award And clear my debts fantastico

You 2 would have been better starting your own threads rather than dragging up someone elses thread.

Canonfodder

DCFC79 wrote: »

You 2 would have been better starting your own threads rather than dragging up someone elses thread.

I wouldn't have been better to do that at all.
The other question is off topic.
The last thing people want is to see the same questions coming up on new threads all the time.

alltaken

Canonfodder wrote: »

I wouldn't have been better to do that at all.
The other question is off topic.
The last thing people want is to see the same questions coming up on new threads all the time.

To answer your question, PayPal accounts are almost certainly kept open if no related debt is present (eBay, other PayPal account). The answers from posters above remains valid, most have found the account remains open and is unaffected.

Canonfodder

Thank you.