Proof of Claim for Business

[ranlaws]

My small business has revived notice of client's chapter 13 and request we file a proof of claim.
I know that this would be considered unsecured debt, but my question is we have (3) returned checks from him in the amount of $5,000 $5,000 & $7,000. Will the returned checks allow me to file this as a secured claim for the amounts of the check and his balance of $23,880 ans insecured.

[newbie2]

I believe it is all unsecured unless there is collateral somewhere that is tied to the debt. Double check with an attorney though, that is a large amount of money owed to you, you don't want to file the claim incorrectly.

[justbroke]

You should research the laws in Georgia on bad checks. If these bad checks were for a contemporaneous exchange, it may be "criminal". However, if they are paying a "credit" account, then the bad checks are probably not criminal in Georgia.

Yes, you would just file a claim. Depending on the situation, you may get "something" from the Bankruptcy estate. It could be as little as nothing, as much as a few dollars, and in extremely rare cases, a substantial portion of it back.

[frogger]

You should research the laws in Georgia on bad checks. If these bad checks were for a contemporaneous exchange, it may be "criminal". However, if they are paying a "credit" account, then the bad checks are probably not criminal in Georgia.

Yes, you would just file a claim. Depending on the situation, you may get "something" from the Bankruptcy estate. It could be as little as nothing, as much as a few dollars, and in extremely rare cases, a substantial portion of it back.

GA law - checks paying for present consideration (ie - they bought a product and wrote you a check / you performed a service and they wrote you a check? are a criminal act. Any check under this situation with a value over $500.00 is also a felony.

However, if the checks were paid:

on an account
on a line of credit
were post dated
were accepted and you knew they were not good
etc.

these are nothing more than an extension of credit and you will be required to file a proof of claim on them.