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Can my paypal account be levied or garnished for a unsecured debt judgment?

Richmond, TX |

I do not have bank account linked to the account and I never payed the debt collector with that account is there anyway that paypal account could be levied or garnished? This is for unsecured debt not government debt

Attorney Answers 3


  1. No, your Pay Pal account is safe. I am not licensed to practice in Texas, so I don't know the exemptions or if your bank account (if you have one) is safe. What I advise my clients with judgments is to get an online bank account or out of state bank account or a pre-paid debit card so that it cannot be levied upon. Some suggestions - ING Direct, ally Bank, US Bank, ready debit or USAA if you are a member of the military (current or former) or a miliary dependent. Stay away from big banks with lots of branches and ATMS. And never bank with someone to whom you owe a debt (like if you have a Bank of America, Chase, Citi or Wells Fargo account and you owe a credit card or personal loan debt to Bank of America , Chase, Citi or Wells Fargo).

    Anyway, PayPal is like a form on an online bank account so you can stash money there and it should be safe.


  2. I disagree completely. If you have money ANYWHERE, that place is holding the money for you. The account can be levied/garnished like anything else. Some times, the judgment has to be entered into the record (domesticated) in another state before this can happen, but IT CAN HAPPEN.

    Before you believe what someone tells you about the law, ask for citations (if they exist).

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.


  3. You ALMOST have enough information to help you here. Assuming that the Paypal money is just money you have received or put into the account from selling goods, and isn't arguably money owed to another, or held to pay someone else, or is about to go to a child support obligation, then it is reachable by creditors.

    However, the creditor has to know about it, which is unlikely unless you have revealed that information to the creditor, and that creditor has received a judgment against you.

    Best is to reach out to the creditor and make a deal. Otherwise, the creditor will sue you, and probably win, and then have a judgment against you for the amount of the debt, plus attorney fees. Then the creditor will ask for discovery, and in that questioning, will ask if you have a bank account. If he's experienced, he'll ask about Paypal, and then you'll either be forced to reveal the information to him, or risk being found in contempt of court.

    I'm not your attorney; my answer to your question includes assumptions. If you want me to be your attorney, I'm easy to find.

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