Bankruptcy chapter 7 or 13: are online bank accounts considered bank accounts? Pay pal, ING, moneybookers, etc?

Asked over 1 year ago - Canton, MI

The reason I ask is because most of these companies call themselves "money markets" and not "banks". Due to the interest I earn monthly I use online accounts instead of "real banks". I do have a "real bank" but there's only $200 in it which I will declare on my paperwork. But I don't see anywhere to include online banking or money markets, unless this should go in the "other" section? I have several hundred stored online in each account so I don't want to get in trouble.

Attorney answers (6)

  1. Andrew Daniel Myers

    Contributor Level 20


    Lawyer agrees


    Best Answer
    chosen by asker

    Answered . Bankruptcy Schedule B directs the filing party to "list all personal property of the debtor of whatever kind." Line 2 requires disclusure of "Checking, savings or other financial accounts ... ". Line 35 requires disclosure of "Other personal property of any kind not already listed. Itemize." You've incorrectly distinguished between online accounts and brick-and-mortar accounts. In reality, any and all assets that are yours must be disclosed. Retain an attorney to file the bankruptcy. Here's what happened to one bankruptcy filer who decided to play fast and furious over accounts: BLUE LINK BELOW

    Law Offices of Andrew D. Myers, North Andover, MA & Derry, NH provide answers for informational purposes only.... more
  2. Scott Benjamin Riddle


    Contributor Level 20


    Lawyers agree


    Answered . Since the question on the schedules is not stated as, or limited to, accounts held in banks, it does not matter what they are called. If you have money there, it counts.

  3. Patrick M. O'Reilly

    Contributor Level 3

    Answered . In my opinion yes all of the accounts that you have listed in your question
    are bank accounts and must be listed in your bankruptcy schedules. If you
    owe any of these entities money, then it is a debt and if you have a credit
    balance with them, then it is an asset.

    Patrick M. O'Reilly

    Attorney at Law

    12845 Farmington Rd.

    Livonia, Mi 48150

    ph: (248)-396-7590

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  4. Dorothy G Bunce


    Contributor Level 20

    Answered . We are seeing all kinds of new-fangled accounts - payroll, unemployment, & social security debit cards. No matter what they call these things, they are deposits of money & most bankruptcy folks will call them bank accounts. Hope this perspective helps!

  5. Asaph O. Abrams

    Contributor Level 12

    Answered . Remember that line from Tommy Lee Jones in The Fugitive: "What I want from each and every one of you is a hard-target search of every gas station, residence, warehouse, farmhouse, henhouse, outhouse and doghouse." I can't say it as well as Tommy Lee (and nobody's giving me an Oscar anyway, so why try?), but it goes something like this: Schedule B must list every form of account or stash of cash wherever it may be, online, offline, under the mattress, in the mattress, in the drywall, under a brick wall, gold-you-melt, garter belt, the list goes on....

    This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn’t address all facts & implications of the... more
  6. Teresa Cho Edwards

    Contributor Level 2

    Answered . Yes if you have money in them they are considered to be assets and must be listed.

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