Refund from Rakuten taken to repay a past due amount included in a Bankruptcy filing

Fyrangel
Contributor
Contributor

There was a past due amount on my paypal account that was listed on a Bankruptcy filing.  Paypal apparently has decided to repay themselves with a rebate check from Rakuten.  I do believe that is not legally correct since the amount of that debt was specifically listed in a Bankruptcy Filing.   Now I can't seem to get anyone to actually listen or understand.   

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2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@Fyrangel 

 

How was PayPal able to get access to this Rakuten rebate?

 

I’m under the impression that any incoming payments that hits your PayPal account balance while the account is in the negative is fair game for PayPal to offset what is owed. Does PayPal know you filed for bankruptcy? Read their user agreement about bankruptcies:

 

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#paypals-rights


Kudos & Solved are greatly appreciated. 🙂
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Fyrangel
Contributor
Contributor

Actually they were notified by the Court and my attorney.   I let them know and also informed them that I had, as required, informed the Bankruptcy Court and would leave it in their hands.   All I can do.  It might not have been a lot but the laws regarding refunds or rebates and Bankruptcy are pretty set in stone.  It's not me I'm worried about but the Court could have claimed that rebate or refund as is their right.   Paypal upon being notified by the court and my attorney had a right to speak at the Creditors meeting, which they did not.   At that point the amount due should have been written off to the Bankruptcy court which would have listed them among creditors to be paid if they deem it should be done.     Just legal stuff.   I was curious and asked but then I read my bankruptcy information and determined it was in my best interest to inform Paypal that I would have to inform the Bankruptcy Court and it would then be their right to determine the next steps.   

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