Cashing Check With A Judgment--Will This Work?

[ryan]

Say you get a judgment from a CC. You're self-employed and need to cash checks received from clients. What stops you from going to your existing bank of many years and CASHING the check rather than depositing it? So that way, if by some chance there was a bank levy order sitting at that bank, they couldn't take your check funds because they never would be technically 'deposited' anyway ?? ...and say the check amounts were $2 to 3K typically.

Is this a viable strategy....at least temporarily?

[OHBOY]

Ryan:
Sounds good, however my experience has been that banks (incl. the ones I dealt with long term & in good standing) will not just 'cash' a check that size unless the account has that much on deposit already to cover in case there is any problem with the check.

I much prefer the idea of depositing such a check in a trusted third parties account, i.e. non filing spouse, or other relative....just my thoughts.....

[catleg]

It probably depends on your bank and the size of the check.
But I do like the idea of depositing to a trusted friend's account.
Write 'Pay to the order of (friend's name)' on the back of the check, sign it, then have your friend sign it, and shove it into one of those fancy ATM's that
scan the check to eliminate teller pushback (some of them are so dumb).

[ryan]

But I do like the idea of depositing to a trusted friend's account.
Write 'Pay to the order of (friend's name)' on the back of the check, sign it, then have your friend sign it, and shove it into one of those fancy ATM's that
scan the check to eliminate teller pushback (some of them are so dumb).

Y'know I was struck by that idea as well. It never occurred to me to do that.

I'm going to test this soon just to see how functional it is.
In a judgment situation, which will be coming at some point, my only real vulnerability is bank levy. ...and other alternatives seem unlikely to work, like Moneycards etc.

[dscurlock]

It probably depends on your bank and the size of the check.
But I do like the idea of depositing to a trusted friend's account.
Write 'Pay to the order of (friend's name)' on the back of the check, sign it, then have your friend sign it, and shove it into one of those fancy ATM's that
scan the check to eliminate teller pushback (some of them are so dumb).

I did not know ATM's scanned checks...insert your card, pin number, punch in your deposit amount, insert the envelope...I am pretty sure a teller at some point will get the checks out and process them. How many checks have you dropped, scanned, and appeared in your account within minutes? if you say none, then I doubt checks are scanned at all...I have always had to put my check into a bank envelope...

[ryan]

It probably depends on your bank and the size of the check.
But I do like the idea of depositing to a trusted friend's account.
Write 'Pay to the order of (friend's name)' on the back of the check, sign it, then have your friend sign it, and shove it into one of those fancy ATM's that
scan the check to eliminate teller pushback (some of them are so dumb).

You know it just occurred to me that while this may work then the person depositing the check in THEIR account will have it show up as a deposit/income and technically be obligated to pay income tax on it? ...or not?

[HMT]

Are they all from local banks? As long as you have ID you can go directly into the bank the check was written from and they should cash it and then you don't have to worry about bounced check fees in you family and friends accounts or have them worry about claiming your income as theirs. It would be a lot of running around admittedly, but isn't that what you are trying to do anyways?

[justbroke]

I cashed a $13K check at a bank that I owed money at. They were even nice to change it to a Cashier's Check drawn on the bank payable to my other bank.

[catleg]

I did not know ATM's scanned checks...insert your card, pin number, punch in your deposit amount, insert the envelope...I am pretty sure a teller at some point will get the checks out and process them. How many checks have you dropped, scanned, and appeared in your account within minutes? if you say none, then I doubt checks are scanned at all...I have always had to put my check into a bank envelope...

B of A has this now.
Other places have "scan from home" deposits.
Shazam!

[sidhesadie]

I don't know about the scanning thing, but I would hesitate to put that kind of money into someone else's account, opening them up to questions of 'where did this money come from"

I just take checks to the issuing bank. You just need photo ID and they will cash it provided there are funds in the person's account to cover it.
I've never had a problem, and I've also never been charged a check cashing fee though I've heard people say some banks do charge a fee.

[catleg]

I wouldn't count on being able to cash checks at the issuing bank.

Especially for a corporate bank account.

Think about it, get a refund check, photo shop it, add a few zeros, take to bank, walk out with cash.

With the appropriate fake id, all you might have is a fingerprint, if they bother to take one.

[justbroke]

I don't think you can, currently, defeat the micro-printing, watermarks and other features of real checks. I cashed one myself that was $13K.

I will say though that you're right about cashing a check made out to a company. I ended up going to AMSCOT for a while to cash my business checks. They only charged me $1.50 per check.

[ryan]

I have been cashing some checks at the issuing bank, and aside from the $3 to $5 fee it has worked....BUT, they have all been for under $1000. My checks will be more soon and I'm just thinking they may not want to do $2K or $3K+ checks as easily. ...but then again, if the money is in the account, I guess they should. ?

Its also interesting to me reading this thread, the diversity of opinion about check cashing. ...Y'know what may work and may not.

Also, Sidhesadie, you're right, the person I spoke to about accepting checks for me was hesitant due to potentially having to explain deposits to irs etc.

[debtprison]

In my experience I can do this but you'll have to read up on your financial institution's rules. Keep in mind that it often takes creditors a while to find out that you have a new account somewhere. So you can often just open up another account elsewhere or have alternate accounts with just the minimum in them and ready to go.

If the checks are payroll checks Walmart will also usually cash them. If not Walmart there are places like Amscott as well -- although they charge very high fees.

[Bell30656]

Actually there are already systems in place to stop that photoshopping of checks then adding a few zeros. For example, after our payroll run a file is sent to our bank that has each check number and amount. When someone goes to our bank to cash it this is checked. We once had an error where everything was off one line and everyone thought the checks were bad.