One question that surprises many clients is:
“Why do you need my PayPal or Venmo statements? I barely even use them.”
It’s a fair question. If you’re filing bankruptcy, it may feel intrusive or unnecessary.
But there’s a very important reason we ask.
💻 PayPal and Venmo Are Considered Financial Accounts
In bankruptcy, you are required to disclose all financial accounts — not just traditional bank accounts.
That includes:
- Checking accounts
- Savings accounts
- Cash App
- PayPal
- Venmo
- Zelle (if it holds a balance)
- Cryptocurrency wallets
- Investment apps
If it can hold money or transfer money, the bankruptcy court considers it part of your financial picture.
Even if you “don’t really use it,” if the account exists, it must be disclosed.
📑 Full Financial Transparency Is Required
Bankruptcy is based on full financial disclosure.
When you file, you sign your petition under penalty of perjury. That means you are swearing that:
- You listed all assets
- You listed all income
- You listed all financial accounts
Trustees routinely ask for:
- 2–6 months of bank statements
- Pay stubs
- Tax returns
- And yes — PayPal or Venmo statements
Why?
Because they are verifying that the information in your petition matches your real financial activity.
🔍 Trustees Look for Transfers and Hidden Funds
Even if you barely use PayPal or Venmo, trustees review statements to confirm:
- There are no undisclosed sources of income
- There are no large transfers to friends or family
- There are no hidden balances
- There are no asset transfers that need explanation
For example:
- If someone sends you $1,500 labeled “gift,” that matters.
- If you transfer $3,000 to a relative before filing, that matters.
- If you regularly receive business payments through Venmo, that absolutely matters.
It’s not about assuming wrongdoing. It’s about verifying accuracy.
💰 What If There’s Only a Small Balance?
Even small balances count.
If you have:
- $25 sitting in PayPal
- $7 in Venmo
- Or even $0 but recent activity
It still must be disclosed.
In most Chapter 7 cases, small balances are fully protected by exemptions and are not an issue. In Chapter 13, they’re simply part of the overall financial snapshot.
Having the account is usually not the problem.
Failing to disclose it can be.
⚠️ What Happens If You Don’t List It?
If a trustee discovers an undisclosed financial account, it can:
- Delay your case
- Trigger additional document requests
- Raise concerns about accuracy
- In extreme cases, lead to dismissal
It’s always better to disclose something insignificant than to leave it out.
🤔 “But I Really Don’t Use It.”
That’s perfectly fine.
If your PayPal or Venmo shows:
- Minimal activity
- No unusual deposits
- No significant transfers
Then it’s typically just reviewed and moved on from quickly.
The request doesn’t mean there’s a problem.
It means your attorney is doing their job properly.
🛡 Why We Ask for Everything Up Front
An experienced bankruptcy attorney asks for PayPal and Venmo statements because:
- Trustees commonly request them
- It prevents surprises
- It protects your discharge
- It ensures your case runs smoothly
The goal is to eliminate issues before they arise — not create more paperwork for you.
📌 The Bottom Line
If you’re filing bankruptcy, assume that any account that holds or moves money must be disclosed.
Even if you rarely use it.
Even if the balance is tiny.
Even if you forgot it existed.
Full transparency protects you.
And in bankruptcy, protection is the entire point.
