Going to bounce a check before filing bk. Stop payment?

[meggie]

I am going to be filing bk in a few months and have been meeting with an attorney.

Attorney advised me to move out of my apartment into a cheaper place that I can afford on a cash budget, because I was spending 50% of my take home on rent. He told me we could include the lease buy-out in the bk.

I got approved for the new apartment and will be saving almost $400 a month. Before they let me sign the lease they needed to show proof that I paid the money I owed to the previous complex (this is the lease buy out). I have already paid the new complex in full for the first month and security deposit so I don't have much left in my account. I just wrote a check for $1050.00 to the old complex for the buy out and I only have about half of that in my bank account.

The check is going to bounce. I am out of the old apartment and have turned in my keys. I have signed the lease and I am current on the new apartment. My current bank account (with only $500 in it) is one of my creditors so I just opened a new bank account last week and my direct deposit all set up to go to the new bank account in about 2 weeks.

Ugh what a mess. Should I put a stop payment on the check and just request a final bill so I can include the whole thing in bk?
Should I just let the old bank account go bad?

Would a stop payment keep me from criminal charges, or lower my chances?
I need to act fast before they deposit the check.

I am such a idiot. There was no other way to get out of this money pit lease.

Any advice?

[dingdong]

I would probably call the property manager and tell them not to deposit the check.

You don't want any criminal issues now that you are starting over.

Tell them you had some kind of financial emergency.

What if the old place calls the new place and informs them?

That is a sticky situation, but you don't want to be charged with writing bad checks.

Perhaps you can get them to agree to a payment plan, make a couple small payments and then BK on the rest.

Also, if they rent the place before your lease is up, they should have to return the rent you paid, unless it was less than the rent owed on the lease.

Most states have laws of mitigating loss by actively seeking another tenant.

I would get everything in writing, so you can show good faith and keep that check out of the DA's office if possible.


If you let the old bank account go bad you will probably get a negative Chexsystems entry.

Wish I could be more help.

But if you keep the check from being deposited, you might skirt the legal issues of writing a bad check.
Did you file already?

[catleg]

Not sure I know what I'm talking about here, but my guess is that it's only criminal if the hot check is given in exchange for new goods or services, i.e. as an inducement.
If a check is paying off an existing debt and it bounces I don't see how that can be criminal.
Likewise, if you have a lease, which is a contract, the bouncing of the check is breach of contract not criminal. If every bounced check was criminal, well, you can imagine.
Again, not an expert here.

[danaf]

I'd go ahead and cancel the check. You are already in the new place and so just let this ride. These days they are lucky to have a paying tenant. Include the old place in your bk.....don't worry about anything criminal - as there was nothing criminal that happend here - it was a mistake. However - hopefully you do not have $400 disposable income per month because that would put you into a ch. 13.

[2xBK]

Stop payment. You can ask to make payments instead of a lump sum if you want/need to, that's fine, but don't intentionally bounce a check. It's just asking for trouble and you don't need any more problems right now.

[car67]

i like the theory the bounced check simply violates the contract and is not a criminal element..... with todays economy any decent manager of any complex will allow this issue to be closed and included in thebankruptcy thats what bankruptcy is for

[car67]

i would file for bankruptcy the sooner the better since you got your new place secured this will squash the check issue i would think!

[catleg]

I found this on another website:
Payments for COD or preexisting debt:

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 creditor 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. However, if the debtor provides a creditor with a NSF check for a COD order, then that act does fall within the bad check laws.

Postdated Checks:

Section 3-104(2)(b) of the UCC, defines a check as "a draft drawn on a bank and payable on demand." A postdated check, since it is not payable on demand, does not satisfy this demand. Consequently, it has generally been held by most states that the giving of a post-dated check does not constitute a present fraud nor is it within the scope of the bad check laws.

[HHM]

I found this on another website:
Payments for COD or preexisting debt:

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 creditor 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. However, if the debtor provides a creditor with a NSF check for a COD order, then that act does fall within the bad check laws.

Postdated Checks:

Section 3-104(2)(b) of the UCC, defines a check as "a draft drawn on a bank and payable on demand." A postdated check, since it is not payable on demand, does not satisfy this demand. Consequently, it has generally been held by most states that the giving of a post-dated check does not constitute a present fraud nor is it within the scope of the bad check laws.

This deals with pay day loan type checks. In the OP's scenario, assuming the state law is like others I am aware of, knowing or intentionally writting a check you know won't clear will violate criminal statute.

[Mi Bankruptcy]

It is a criminal issue if you wrote the check and did not have sufficient funds in the bank to cover the cost of the check when you wrote the check. Call the old place tell them you had an emergency and you had to put a stop payment on the check. Then cancel the check. Tell them you would like to make a payment schedule to help cover this. Fax them a letter of the agreement over the phone and then follow up with a certified letter stating your agreement as you understood them. Don't say anything to your new landlord unless they say something. I would also tell them you understand their is a fee for a returned check and you would gladly like to include that fee in your payment plan or you can stop buy and pay it in cash.