Asked in Bankruptcy for Alaska

Q: Chargeback scam and paypal. Bankrupt company to avoid negative balance?

Sold 3d Printers through my webstore. Got lots of chargebacks. I now have negative balance on my Paypal account. The account is registered under a limited company but with my name, as managing director for that company.

It is a one person trading company.

I planned bankrupt the company, if I do that I do not need pay the negative balance in Paypal.

Paypal answered us that it does not work like that, that I as the contact person still need pay back the negative balance even if I bankrupt the company.

Can Paypal do this?

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1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Bankruptcy Lawyer
  • Freeeport, FL
  • Licensed in Alaska

A: You should review the fine print in the contract you had with Paypal. It could be that you agreed to be personally liable.

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