Paypal credit and Bankruptcy

[IAmMars]

So I have sort of a unique issue that I have several questions I'd like addressed. 

When I was 18 for my christmas present my mom let me sign her up for paypal credit, so I can make payments on an alienware laptop. This account has about 1100 left on it, and it's still eligible for the 6 months no interest.

My mom has hit a pretty rough spot in her life and she finds it necessary for her to file for bankruptcy, which includes her paypal account and how much is owed in total.

I had full intentions on having this paid off, and it really sucks that she has to have this 1100 dollar balance shown on her bankruptcy statement or however it works on how much is owed when in reality it's what I'm paying for, and what I owe, she was just kind and signed up for this because I really wanted this item.

I've been making ontime payments for quite some time now on the account and was curious on how all of this will effect the account, if I should be making full payments and dish out what I can give, and what entails for the account.

I asked my mom what I should do with the account and she says to don't worry on paying on it anymore. Is that the right thing to do?

Please let me know.

Thanks. 

[DPCreations]

Who owns the acocunt, you or your mother?

Whose identity information is on the account?

Whose bank account is linked to the account?

What about a credit card?

As I understand, you have been fraudulently using another person's account as if it were your own.  You have run up a debt on your mother's account and that will have an impact on her finances.  What you have done REALLY sucks.

The right thing to do is to take responsibility and pay your debt.

[IAmMars]

She owns the account.

Her information SSN, and everything is on the account.

My bank account is on the account, as well as my debit card.

I have been using her account as if its mine yes, but as I understand all payments, bills and everything go directly from my bank account/debit cards.

I have taken full responsibility already and was definately willing to pay my debts.

I was mostly curious on what happens to the credit account alltogether, if it'll stay open and whatnot.

She's telling me to no longer pay on the account.

I'm getting two different opinions here.

[DPCreations]

I suspect the acocunt will eventually be limited, especially since you have linked your own bank acocunt to another person's PayPal account.  This also means any creditor seeking money from PayPal will be able to see a link to your own bank account.  I think your own bank account is in jeopardy since her PayPal and Credit is in jeopardy because of the debt you created for your mother.

So, have some respect for your mother and pay your bills.

[IAmMars]

Not to sound like a jerk*, but do you not read my posts? I said I had full intentions on paying the debt I made, I was curious on what would happen to the debt I made, that is technically under her name. 

[DPCreations]

When it comes to paying creating debt your intentions are irrelvant.  Actually, if they were serious intentions you would have paid the debt.  Since your bank account is linked, any impact on the PayPal Credit account will impact on your own account.  It may even be discovered that they are improperly linked.

If your PayPal Credit debt is not paid, the debt will be sold to a debt collector and your mother's PayPal Credit and likely PayPal account will be limited and this could impact on your bank account.

Bankruptcy proceedings are legal maneuvers and the type of bankruptcy protection matters.  You have not stated that--and it matters.

In the meantime the PayPal Credit account would be in default and sold to a debt collecter and not part of bankruptcy.  But it depnds on the type of bankruptcy filing and how it proceeds.

Even if you do pay your PayPal Credit debt the bankruptcy filing could be associated with your own bank account for seven or so years.

I know how I would feel if I found a sibling taking advantage of my mother's generosity. 

[IAmMars]

I'm seriously not understanding your aggression. 

I neglected to mention the bank account is mine with her name on it from when I was 16 and I needed an account made.

The purpose of her using the credit account was so I could buy something and pay it back over a period of time. Thats what the advantage of paypal credit is for right?

I'm not taking advantage of her. She's completely aware, and can take control of the account at any point, during any time.

She herself, hit a rough patch in life and is filing for bankruptcy on the rest of her debt, while me personally is still paying on this credit that was opened in her name.

My original question was, what would happen to the debt and and to the account associated with it. You answered the question, but I'm still not 100% on the answer.

Would the debt just dissapear? She said she's filing for chapter 13 bankruptcy. She asked for the account number and balance so she could report it to her attorney as to not hide any debts in her name, because it is in fact in her name.

Do I continue to pay on it regardless of her filing for the bankruptcy, or what do I do. 

I do have serious intentions on paying the debt off, it was going to be paid off in full by the six month cut off date. I'm literally throwing all the money I can at this account. I was just wanting to know in return, what will happen to it all a month down the road, two months etc. What to expect, and if there is anything I can do.

Furthermore, I do appreciate your reply to my post, but please don't take the post as me taking advantage of my mom. It boils my blood, and I don't want to come off as a spoiled child who just wants to put his mom in debt with no mind of repayel. 

Thanks. 

[DPCreations]

For specific answers you will need to contact the lawyers handling the bankruptcy.  You are the attorneys are  the only one how can do the research and determine the outcome.  The attorneys are the ones who can predict how it will turn out.

As for sibilngs and mothers, I've seen it firthand where a mother knowing allows a child to take advantage of her generosity in finances--and not pay the debt.  I always recommend that any financial arrangements between parent and child be documented with date of debt and repayment plan and record for other sibilings to verify.  The parent should not be the one taking the risk for a child who is capable of earning money.

[WipedOut]

@IAmMars

IamMars,

The answer to your original question is a little tricky.  You see under chapter 13 you still generally setup some type of repayment plan though often it is at roughly 1/3 of the original debt.  The reason for this is to get the bankruptcy off your record in a shorter amount of time (generally 7 years vs 10 years).  A lot of this will have to do with your moms hired lawyers and their negotiation skills

The reality is with bankruptcy looming you know where the end of the road is for the debt.  Your mom or you may still have to pay some of it but most will be discharged.  If you do continue to pay the debt the amount your moms lawyers would negotiate would be lower but for every $1 you put on the debt just consider maybe 30 cents to be applied towards the payoff of the chapter 13 repayment.  I do believe some shady collectors would attempt to come after you for the debt even though your mom discharged it (and even though there would be no legal right for them to do so).  When you mom does find out a payment plan for the loan in question I would advice you to pay her a check and let her pay the debt herself as to not attach your name to the account, just my advice.

Hope this helps

[Westerndigital]

I feel the need to chime in here because DPCreations is obviously being a real **** and has no idea. 

It's not illegal or unusual for your mother to buy you a laptop and have you make payments on it. That's what parents do. Don't be ashamed of that whatsoever. 

Your bank account being used to make payments towards it has nothing to do with your mother's bankruptcy.

Your mother, having filed for bankruptcy, is ethically and legally bound to include the paypal credit debt in her filing. Nobody is allowed to exclude debts when they file, because you can't decide you're going to pay one creditor and not the other. If your mother owed your father $1000, she would need to include that in her filing. When you file bankruptcy, the attorney specifically tells you to "include everyone in the world that you owe money to."

You nolonger have to pay on the laptop if she has already filed. The account will probably be closed, and paypal is not allowed to even attempt to collect on the debt without going through the courts, if it is included in the bankruptcy filing. If they do, that's illegal and they can be sued. If your mother filed for a chapter 13, then the trustee/ courts will decide what portion of the debt your mother included in the bankruptcy can be paid back. And that portion is then paid by your mom to the trustee/ court and then dispersed to the creditors included in the bankruptcy. Chapter 7, you pay nothing back.

Paypal credit is different from paypal. Any attached accounts in paypal should not be impacted by a bankruptcy. You making payments towards your mother's paypal credit account has nothing to do with her bankruptcy. Continuing to make payments on the debt after she filed bankruptcy does nothing but make you have less money. It won't help anything as far as the account or bankruptcy goes.

Hope that helps, because it didn't seem like you got any help above....