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If I sell a vehicle on Ebay through Pay Pal, can creditors attach the the funds. I have no bank account.

Phoenix, AZ |
Filed under: Credit Debt

My wife and I are both 68 and on Social Security. My wife is disabled, I lost my job 4 years ago and we owe credit card debt which we can't pay, savings are depleted.

I want to sell our vehicle to pay for living expenses and pay the deductible for my wife's hip operation.

I'm trying to sell the vehicle on Ebay and the buyer wants to deposit funds in Pay Pal to pay for the vehicle. Can creditors attach funds deposited in Pay Pal ?

Thanks, John

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Attorney answers 3


The short answer to your question is Yes a creditor can attempt to get funds from your Paypal account as Paypal is much like a bank in that way. However, if the creditor that you are worrying about doesn't have a judgement against you, it would be impossible for them to take money out of your Paypal account as a creditor must have a judgement against you in order to get money out of your account. The buyer probably wants to use Paypal to pay you as he gets some limited insurance on his purchase from you by using it. Plus, Paypal is a great way to boost his confidence in a sale from ebay.

If there is no judgement against you then you have absolutely nothing to worry about with using paypal, if there is a judgement against you, it is doubtful that the creditor will look there for money from you. They definitely will not look there first and since you can withdraw funds from Paypal almost immediately, it may be the way to go.

I hope that this answered your question and that you found the information helpful.

Thank you,
Parker Evan Bornmann
The Bornmann Law Group, PLLC

Contact me directly at 480-833-8000 for a free (1 Hour) consultation. I have law offices conveniently located in Mesa, Glendale, and Tucson, Arizona. You and I do not have an attorney-client relationship formed by our communications on this website. Advice given by me on this website is general advice based on partial information. You should not rely on any advice given without first hiring a lawyer in the area where the case is pending, and providing that lawyer with full information.


Hi John!

Paypay is a bank, and when you use Paypal, it technically is a bank account. However, it isn't the first place that creditors look for money when trying to collect on a court judgment, so I wouldn't be overly worried about the money running through a Paypal account. Besides, once the money goes into Paypal, you can pull it out right away.

Unless you have a court judgment, you don't need to worry at all, and if you do have a court judgment, you only need to worry a little. Hope this perspective helps!

Gary D. Bollinger

Gary D. Bollinger


Dorothy, I have never seen a PayPal garnishment. Have you?

Dorothy G Bunce

Dorothy G Bunce


No I haven't seen an attachment from a Paypal account, but I have several clients with merchant accounts. The bankruptcy trustee require the account records to be produced and any nonexempt funds in the account must be turned over.

Gary D. Bollinger

Gary D. Bollinger


Although I have not had a case, I understand that bankruptcy Trustees in Eastern District of MO, where I practice, seek pay over of PayPal accounts from PayPal. I started asking clients specifically about PayPal accounts in 2011. On another note... Of course, NACBA & ABI have their own approaches, but wouldn't it be nice if Avvo attorneys combined their knowledge into a "best consumer bankruptcy attorney practices" handbook? There is simply no better forum than Avvo bankruptcy for taking real world inquiries and obtaining results-driven, attorney-vetted responses.


The first question is do you have a judgment against you. If not they cannot take any of your money. Given what is going on, it might be the time to talk with an attorney about how to get out of the debt you have.

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