Paypal safe from garnishment?

Discussion in 'Credit Talk' started by tathepilot, Oct 8, 2003.

  1. tathepilot

    tathepilot New Member

    If I have money in a paypal account would that be safe from garnishment? I live in ny
     
  2. Flyingifr

    Flyingifr New Member

    A creditor can sieze any bank account titled in your name if they can find it.

    IF THEY CAN FIND IT is the operative word here. Paypal accounts, not being ina brick-and-mortar bank, are much harder to find.
     
  3. DHK

    DHK New Member

    I'm not an expert, but my paypal debit card says "Bank One". So legal papers "could" be served to Bank One in IN or IL (where ever they are).
     
  4. tathepilot

    tathepilot New Member

    ok thanks for the help. working on getting my credit score back. In the mean time trying to find the safest place to put my money.

    Any help will be appreciated.

    thanks
     
  5. DanS

    DanS New Member

    Safest place - in a money belt.

    If you're living defensively, there's no halfway. I battled w/the IRS for years, got my accounts slammed all the time. Kept small balances, used traveler's checks a lot.
     
  6. Buck

    Buck New Member

    Because of a dispute I had with a bank a number of years ago, I was unable to open another checking account. I lived a cash existance for about 5 years. Paid all my bills with money orders. Paid for everything else in cash. I mainained a savings account just so I could cash my pay checks, and kept only the minimum amount required in it. I stored my savings in a 401(k) (can't be garnished). If you don't want to tie up your money in a 401(k) (there are penalties for early withdrawal), use a safe deposit box at a bank, or consider buying a safe for your home (you can even buy one reasonably at Walmart). You could also buy savings bonds. Those also can't be seized or garnished by anybody. You can cash them in after six months.

    The downside of this is I didn't build any positive tradelines for my credit report. After 5 years, I was able to open my own checking account once again, and I also have a savings account at a credit union. My credit union offers a secured Visa card. The credit limit is determined by the amount in your savings accounts. I believe the interest rate is somewhere around 9 percent. I don't have it yet, but I plan on getting it!

    Good Luck.
     
  7. DHK

    DHK New Member

    I'm almost positive that you'd have to have a checking or savings account with whatever bank you want to have a safe deposit box. I know that's true with Wells Fargo. (We use your account to charge the annual fee for the box.)
     
  8. Flyingifr

    Flyingifr New Member

    I don't believe serving bank One would be productive, since I signed no papers with Bank One. I signed the papers with paypal and nowhere was bank one mentioned. Therefore, I believe the master account is Paypal with bank One, and teh sub accounts are with Paypal and its customers, who are unknown to Bank one.
     
  9. GEORGE

    GEORGE New Member

    Re: Re: Paypal safe from garnishment?

    Sounds like BANK ONE is just the MIDDLE MAN...
     
  10. DanS

    DanS New Member

    Re: Re: Paypal safe from garnishment?

    If you're worried about having your account(s) levied, you can't do this halfway.

    Well, you can, if you can kiss the money you've got in those accounts goodbye and not need it.

    You can have a savings and/or checking account w/very low balances for the purpose of cashing checks.

    Safe deposit boxes are tricky. You'll need a relationship w/the bank. That means your account can be found.

    Savings bonds are great but not liquid for six months. Travelers checks are easily cashed AND replacable if lost/stolen.

    I lived this way for more years than I'd like to admit. It's not easy, convenient or fun. Eventually I hired someone to help me w/the IRS and my life has been a LOT less stressful since. In my case, a Ch7 BK was the solution.

    It's not a great place to be. The IRS is like a Super Powered Collection Agency that enjoys making your life miserable (levying an account on Friday of a holiday weekend so you're SOL for days and then weeks - nice guys, really:) but I would imagine that many of their tricks can be pulled by crafty lawyers.
     
  11. DanS

    DanS New Member

    Re: Re: Paypal safe from garnishment?

    If there's an SS# associated w/the account, it can be found. Doesn't matter who signed, referred, spoke or saw who.
     
  12. jrjr37

    jrjr37 New Member

    Re: Re: Paypal safe from garnishment?


    Sometimes the judge orders what is called a "Financial Disclosure" form to be filed by the debtor. This form will require you, under penalty of contempt of court, to list all your assets, bank accounts, real estate etc.........


    I'm not sure if it's up to the judge or the plaintiff, whether the loser has to fill this out, but it is not always required.
     
  13. Eeyore

    Eeyore New Member

    I know this is like 7 years old but just in case someone was looking for info and stumbles across it.

    It doesn't matter if PayPal is a bank or not. A garnishment is filed against anyone holding assets on your behalf. If you give $500 to your mom to hide in her sock drawer and the creditor files a garnishment against your mom, she would be required to fill out an affidavit listing any property or assets she is holding on your behalf. If she lies then not only would she be subject to criminal prosecution, she would also personally be liable for the amount.

    If you have a job and they file against your employer..same deal. It's coming out of your check.

    The other thing they were talking about is when you are ordered to show up in court to disclose your bank accounts, etc... This is called an asset hearing. You can file this against someone once you have a judgement against them. They are required to show up in court and you are allowed to ask them any questions about their finances. If they don't want to answer something then you both go before the judge and he either says they have to answer or not.
     
  14. billbauer

    billbauer New Member

    Now that's interesting indeed. Last post in this thread was 7 years ago and you just had to go dig it up. Why?

    And while what you are saying is basically all true enough I'm quite sure that some debt collector is going to get some sheriff to go rummage through Mamma's underwear to see if she has cash stuffed in a stocking or an envelope so it can be claimed as belonging to her son or daughter. Yeah sure! Not realistic. Anyway there are much better ways to keep garnishment apes from ever finding out where you have stashed your cash. They can't ever find out unless you tell them. I'm going to get a judgment soon enough and when I do I'll tell them exactly what bank my money is in and I'll almost beg them to go grab it. I seriously doubt they will get that stupid. I know of another case where the defendant lost in court and begged the same lawfirm to go grab the money and they didn't seem to want it all that bad because they never tried it. They just forgot the whole thing and never bothered the defendant again.

    I was reading through some old court cases just a few days ago and the outcome was the same except that lady told the judge up front where her money was and how much she made and the case is still open today. That case was back in 2007 and the law firm didn't even bother to set a hearing date so the case is still open and hanging there.

    If they even threaten to garnish my money I'll have them in federal court the next day. No problem.
     
  15. jaykay

    jaykay New Member

    Hey Bill:

    Because I am new -- what do you mean by:

    __________________________________
    I know of another case where the defendant lost in court and begged the same lawfirm to go grab the money and they didn't seem to want it all that bad because they never tried it. They just forgot the whole thing and never bothered the defendant again.

    I was reading through some old court cases just a few days ago and the outcome was the same except that lady told the judge up front where her money was and how much she made and the case is still open today. That case was back in 2007 and the law firm didn't even bother to set a hearing date so the case is still open and hanging there.

    If they even threaten to garnish my money I'll have them in federal court the next day. No problem.
    ______________________________

    What do you mean... can they (creditors) not do this? Why? Can the IRS garnish and you go to federal court?

    THANKS
     
  16. billbauer

    billbauer New Member

    Because this relates to ongoing litigation I'm not at liberty to disclose that information. On the other hand I can tell you that in most cases creditors can and do get a garnishment and go after anything they want including bank accounts, wage garnishments and whatever else is allowable by law. So please don't think that I have some kind of magical cure for garnishment that nobody else knows about. That just isn't so.
    As far as I know the IRS can do anything it wants to do. Truth is I don't know anything about IRS and hopefully never have to find out anything about them other than how to pay them what I owe them if anything.
     

Share This Page