#9 of Things Not to Do When You Are About to File for Bankruptcy

Posted by on Sep 18, 2014 in Bankruptcy | 0 comments

#9 of Things Not to Do When You Are About to File for Bankruptcy

Don’t write bad checks. If you write bad checks, there are a couple of things that can happen totally unrelated to bankruptcy: you can be prosecuted for a crime (it’s a felony in some states) and you incur returned check fees. If you knew the check would be returned, in bankruptcy it’s called fraud. Writing a check for a debt you know you cannot pay can make that debt non-dischargeable in bankruptcy. The bank has the right to contest the dischargeability of a debt to them (such as the bad checks and the returned check fees) and I’ve seen it happen. They take the sequence of events in your account for several months prior to filing for bankruptcy and see if you are writing checks you cannot pay. A pattern of this behavior will cause them to contest you being able to discharge this debt in bankruptcy. Your attorney’s retainer agreement most likely does not cover having to defend this under their flat fee arrangement. Defending against this type of proceeding can be very costly, something you don’t need when you don’t have money.

 

Again, don’t write bad checks whether or not you are about to file for bankruptcy.

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