QUESTION

Can payday loan places cash my check after I file bankruptcy?

Asked on Apr 04th, 2013 on Bankruptcy - Indiana
More details to this question:
I just recently filed for chapter 13 bankruptcy in Indiana. I have 2 outstanding payday loans - one in Indiana and one in Illinois. Both of these places have been notified of my filing as they are included in my list of creditors. However both of these places have post dated checks of mine. Can they still cash these checks?
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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Great question, and I"m not completely sure of the answer since it may depend in part on laws in your state, but here are my thoughts. First, you gave them the check with a promise that there were sufficient funds in the account to honor the check.  Thus, if they deposit or cash the check, that probably would not be considered an attempt to collect which would violate the bankruptcy automatic stay.  But I have not researched this issue, so this is just off the top of my head. Second, in California at least, writing post dated checks is against the law, and there can be criminal sanctions awarded which would not be dischargeable in a bankruptcy case.  I don't know if that's the case where you are or not. This is a significant enough issue that you should have your bankruptcy attorney research the issue.  If they deposit the checks and they bounce, it could cause a lot of problems for you, including being put on "Chex Systems" which would prevent you from being able to open any new bank accounts. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  
Answered on Apr 06th, 2013 at 4:20 PM

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