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Bankruptcy Law/Are large sums of NSF checks dischargeable
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Question
I have a customer who bounced about $12,000 in checks which were issued for the purpose of purchasing inventory. This occured around the first of the year. We have made attempts to get him to pay but have not had any success. I now am hearing that he is filing for bankruptcy. As passing NSF checks is a Felony, is the debt dischargeable?
Hi Lou.
The balance would be dischargeable for NSF checks, unless there was fraud involved. However, although dischargeable, the creditor could refer your file to the states attorneys office for criminal charges, as writing NSF checks is quasi criminal in nature. Therefore, you would usually have to pay back the NSF checks.
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Thanks for the quick response. Just to verify, I am the creditor. Your answer is what I figured but was not sure. Thanks again. Lou | ||
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Terry Leeders
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Handles Chapter 7 and Chapter 13 bankruptcy cases.
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