Question about cashing a check

[CCsSuck]

I was wondering if you owe a creditor money and they've gone through the motions and have a judgment against you, if you could take a paper check to one of their branches to cash it, or if they would be able to seize part of it when you tried this.

I am current with my accounts with Chase for now, but my work uses Chase and instead of having to pay to get my check cashed I'd rather just go to the branch for free, but not if they will run my ID, and seize a portion of my check, lol. Anyone have experience with this?

[doni49]

Have you filed/are you filing BK?

[CCsSuck]

I haven't yet, if I do, it would likely be in the beginning of '12, however, I cannot keep paying at least one of my credit cards and I forsee that leading into a downward spiral... I currently have a bank account and two credit cards with chase (one is maxed out, the other one is closed with a balance). I plan on switching banks soon, anyway, but if I were unable to keep paying one or both of my chase credit cards, and they were to eventually get a judgment against me, I am wondering about going into a chase branch to cash a check since my work uses chase.

[drowning123]

Chase was one of my creditors and I cashed a check at one of their branches, but I didn't have a bank account with them.

[CCsSuck]

Chase was one of my creditors and I cashed a check at one of their branches, but I didn't have a bank account with them.

But did they hold a current judgment against you?

[drowning123]

Oops, no. Sorry.

[treehugger1]

In my opinion, cashing a check at a bank where you have a bank account and have defaulted on unsecured debt is a recipe for disaster. While Chase may not technically be able to "attach" your check you attempt to cash, it could be up to you to make that argument after the fact! Ouch!

There are other ways to deal with your paycheck. Check out some of the "prepaid" card/bank accounts on the internet. I think several folks have mentioned Cap1 prepaid debit card accounts. They currently have no monhtly fee if you load (or direct deposit) $500 per month. You have all the amenities of a bank account but you cannot write paper checks. Big Deal! In fact, some of these prepaid accounts may turn out to be cheaper than many of the new bank 'checking" accounts. You can also look into Walmart Money Card (walmartmoneycard.com) but in some locations the amount you can have on the card cannot exceed $3000.00. There are also employee debit cards. You can apply for these at many banks that do not formally work with your employer. Bank of America offers a "employee" debit card account that also has ACH capability to pay bills, etc. The only way you can deposit to the account is through direct deposit of a paycheck, but this account is very good. Try googling bank of america cashpay. Again, my initial advice is to stay away from institutions where you have defaulted on debts owed. Let us know what you decide to do. Experience is very important for others on this board.

[CCsSuck]

In my opinion, cashing a check at a bank where you have a bank account and have defaulted on unsecured debt is a recipe for disaster. While Chase may not technically be able to "attach" your check you attempt to cash, it could be up to you to make that argument after the fact! Ouch!

There are other ways to deal with your paycheck. Check out some of the "prepaid" card/bank accounts on the internet. I think several folks have mentioned Cap1 prepaid debit card accounts. They currently have no monhtly fee if you load (or direct deposit) $500 per month. You have all the amenities of a bank account but you cannot write paper checks. Big Deal! In fact, some of these prepaid accounts may turn out to be cheaper than many of the new bank 'checking" accounts. You can also look into Walmart Money Card (walmartmoneycard.com) but in some locations the amount you can have on the card cannot exceed $3000.00. There are also employee debit cards. You can apply for these at many banks that do not formally work with your employer. Bank of America offers a "employee" debit card account that also has ACH capability to pay bills, etc. The only way you can deposit to the account is through direct deposit of a paycheck, but this account is very good. Try googling bank of america cashpay. Again, my initial advice is to stay away from institutions where you have defaulted on debts owed. Let us know what you decide to do. Experience is very important for others on this board.

My only hesitation with the prepaid debit cards is that they have the potential to be levied. Its not so much an attempt to "hide" money from potential judgment creditors as it would be to ensure that they don't take money (wages) that they wouldn't otherwise be entitled to. Yes, I know I could go to court and made my case, but I'd rather know that the money for my rent was available and not frozen. I think when it gets to the point that judgments against me are a real possibility I will go all cash and just not run the risk of having a bank account or prepaid card, even if its a hassle. I was just wondering about cashing the check at the branch it was written from to save some money and to avoid the hassle of a cash cashing service. Thanks for your thoughts!

[treehugger1]

You are welcome, and I gave you some options. In the end, even cash is a potential victom of levy. It is your sense of "honesty" and "transparency" that could be flawed. Since most prepaid cards are essentially cash accounts, how can "hiding" such information be any different than hiding "cash?" Just curious.

[CCsSuck]

You are welcome, and I gave you some options. In the end, even cash is a potential victom of levy. It is your sense of "honesty" and "transparency" that could be flawed. Since most prepaid cards are essentially cash accounts, how can "hiding" such information be any different than hiding "cash?" Just curious.

Simple. In Florida when they seize a bank account, which they could conceivably do with a prepaid debit card, you get no notice until you try to use it and it doesn't work. Whereas if I'm asked how much cash I have on hand, I'd be honest, but I would know when they were going to try to take it. This way I wouldn't be screwed when I had to pay my mortgage or utilities. IE: It would hopefully mean one less trip to the courthouse and a lot less frustration.

[GoingDown]

Simple. In Florida when they seize a bank account, which they could conceivably do with a prepaid debit card, you get no notice until you try to use it and it doesn't work. Whereas if I'm asked how much cash I have on hand, I'd be honest, but I would know when they were going to try to take it. This way I wouldn't be screwed when I had to pay my mortgage or utilities. IE: It would hopefully mean one less trip to the courthouse and a lot less frustration.

If that is what you chose to do, that's up to you.

But there is no way I would ever tell anyone how much cash I had.

It would be up to them to prove I was lying about the cash, and quite simply, I think that it would be impossible for them to prove it, and in all reality, they wouldn't even try to prove it.

This is merely information I have gathered from friends with local bank judgments against them... they cash checks at these banks without any problems at all. All the teller looks at is the account the check is written on, and attempts to determine if it is valid, and then checks the photo i.d. of the person cashing the check and makes them give them a thumb print on the check. They do not check to see if the person cashing the check has a judgment against them at all. Think about it this way, let's say that the person has a common name and someone else with that same name has a judgment against them, it would be unfair to take this person's money to pay the judgment of the other person just because they have the same name. And they are always in a hurry. They don't spend a lot of time cashing each check. They have to run them through the lines quickly.

I should also add that, when the teller asks them if they have an account there, they say no. That way they are treated as a non-customer, just cashing a check.

[CCsSuck]

Awesome, thanks!

[RichM]

There is no law I know of that requires you to make your entire mortgage payment once a month. You are required by the note you signed to make sure that it's paid not later than such-and-such a date every month. So assuming the bank is nearby, you could just walk in once a week and make one-quarter of the payment each time. If they're not nearby, you could send a money order for one-fourth the payment every week. By the due date, they will have received the full amount due. They might not like it, but seriously, who gives a rat's ass what they like?

Another option would be to buy a money order for one-quarter of the mortgage (as well as any other relatively fixed, monthly expenses) every week, immediately make the money orders payable to the payees, and give each payee multiple checks totaling the entire amount due on the due date. So if your mortgage is $1,000.00/month, give them four money orders for $250.00 each. Again, they might not like it. And again, who cares what they like? You're fulfilling your obligation.

Discussions like these sometimes raise ethical questions about whether it's "right" or "wrong" to hide money from creditors. I think that's a lot of nonsense. For people in financial crisis, survival comes first. You need to eat. You need a roof over your head. You may need a car to earn a living. Your kids need shoes. And so forth. And so on. Having a limited amount of money means having to make choices who gets paid, and there's nothing irresponsible or unethical about making sure that the necessities of life get paid for first.

Do you think the people at Crap 1 Bank lose any sleep debating ethical considerations when they empty a family's checking account and the family goes hungry for the rest of the month? So don't preach to me about what's ethical.

-Rich

[treehugger1]

I am always surprised at the number of folks who think the judgment creditor goes and flicks a switch and suddenly knows everything about your business with finanicial institutions. In the end, I believe Goingdown is correct. Now, if you need an account to pay bills online (ACH routing and account number or 16 digit VISA/MC number) then you need to consider other options; prepaid cards are an option. Unless you have used a prepaid card to pay a judgment creditor, it is highly unlikely anyone will know about some prepaid account. And, it can get even better for many debtors. Generally, prepaid cards have an actual bank from which the card is issued. In some (many?) cases the prepaid card "bank" is some weird name bank that does not even do business in the debtor's state. The only one true method of locating a debtor's direct deposit prepaid account is for the judgment creditor to subpoena the payroll records of the debtor. How likely is this (unless you are OJ Simpson)? Even then, the payroll office may only legally be able to list the deposit bank; not necessarily the account number. None of this manipulating is illegal, unethical, or immoral.

As GD eluded to, cash is not even something worth going after. Cash? What cash? Oh, I gambled all my cash away. Oh, I eat out every day and night. It costs $1K per month. Oh, I have a drinking problem and buy myself and others at the local watering hole drinks many time per week ($1 - $2K per month.)

Will the cops show up and cut up your mattresses? Well, maybe, but who gives a shit. Keep your "cash" on several prepaid cards that you keep in your auto air-cleaner housing. Cash is just way to loose to be accounted for. Which suggests why cash is king in many ways; no trace of where, when, or how you spent it. It just vanished

[jacko]

I have my measly pay check direct deposited on a Wal-Mart moneycard.

In my opinion, cashing a check at a bank where you have a bank account and have defaulted on unsecured debt is a recipe for disaster. While Chase may not technically be able to "attach" your check you attempt to cash, it could be up to you to make that argument after the fact! Ouch!

There are other ways to deal with your paycheck. Check out some of the "prepaid" card/bank accounts on the internet. I think several folks have mentioned Cap1 prepaid debit card accounts. They currently have no monhtly fee if you load (or direct deposit) $500 per month. You have all the amenities of a bank account but you cannot write paper checks. Big Deal! In fact, some of these prepaid accounts may turn out to be cheaper than many of the new bank 'checking" accounts. You can also look into Walmart Money Card (walmartmoneycard.com) but in some locations the amount you can have on the card cannot exceed $3000.00. There are also employee debit cards. You can apply for these at many banks that do not formally work with your employer. Bank of America offers a "employee" debit card account that also has ACH capability to pay bills, etc. The only way you can deposit to the account is through direct deposit of a paycheck, but this account is very good. Try googling bank of america cashpay. Again, my initial advice is to stay away from institutions where you have defaulted on debts owed. Let us know what you decide to do. Experience is very important for others on this board.