Writing Bad Checks: Penalties, Punishments, and Consequences.
Writing a bad check is a serious offense in Texas. This is why the Texas legislature has created serious laws to be enacted for anyone caught writing a check they cannot afford to pay. In Texas, a bad check is one that is written for an amount that is more than the amount in the checking account provided.
Texas Penal Code states that a check is considered bad when the person who issues the check (a) knows there are not funds in the account, (b) has no account with the bank the check was drawn on or (c) a payee was issued a check, attempted to cash it within 30 days of issuance, the check didn't clear, the signor was notified and failed to pay the amount of the check within 10 days.
In most cases, NSF checks are not considered under the bad check law if they are used to pay an antecedent debt. Therefore, if a debtor gives a debtor an NSF check to pay a note payment or to pay an invoice that is on account, the act generally does not fall within the bad check law.
When a person writes a check to pay for something, knowing that there are insufficient funds on deposit to cover the amount written on the check, it is considered an act of writing a “bad check” and it is against the law. Issuing a bad check is a Class C misdemeanor in Texas.
If the maker of a bad check does not respond to your notice and fails to make the check good you should contact a member of the Commercial Collection Agency Association of the CLLA to discuss the situation with them. They will be able to offer you assistance with the collection of the bad check and put you in touch with legal counsel if you desire to discuss legal remedies that may be.
Writing Bad Checks. Oftentimes, people will write a check knowing that there are insufficient funds in the associated bank account. In some cases, the person is anticipating getting paid before the check is deposited and has every intention of making good on the payment. Other times, the person intentionally wrote a bad check on a closed account.
Issuance of Bad Check (a) A person commits an offense if he issues or passes a check or similar sight order for the payment of money knowing that the issuer does not have sufficient funds in or on deposit with the bank or other drawee for the payment in full of the check or order as well as all other checks or orders outstanding at the time of issuance.
In the State of Texas, writing a Bad Check is a crime and it could be punishable with a substantial fine or even jail time. Depending on the amount of the bad check or bad checks written, a person can be prosecuted for a felony.
Questions about Bad Checks and Bankruptcy — Fort Worth Debt Relief. A bad check, hot check, NSF check, returned check, rubber check, worthless check, or whatever you want to call it, is a check which the bank will not pay because there is either no such checking account or insufficient funds in the account to pay the check.
Writing checks on an account that has already been closed out is against the law. Individuals can take actions to remedy the situation if they are the ones who wrote the check, and recipients of the bad check can first reach out to the perpetrator. You can also take legal action if necessary.
Bad Check Laws In Idaho. by Thomas Vargo. Below are the civil and criminal penalties for writing a bad check in Idaho under Code Sections 18-3106 and 28-3-104, 28-22-105, 28-22-106. Dishonored checks plus fees must be paid within fifteen days after the holder of such check sends such notice of dishonor or the following may apply.
Issuing a bad check in the State of Texas may be a criminal offense under Sec. 32.41 of the Penal Code of the Texas Statutes. A person is presumed to have knowingly committed fraud if at the time he issued or passed the check he had no account with the bank or other drawee, payment of the check was refused within 30 days after issue and he failed to pay the holder within 10 days after.
In most states it is illegal to offer a dishonored or bad check. Additionally in most cases the amount of the bad check would determine whether or not the offense is a misdemeanor or a felony.
