Maybe you’re facing a foreclosure, a repossession, or a judgment on a credit card lawsuit is about to be entered against you, and, you have no other options to prevent any of these things from happening except to file for bankruptcy.After careful consideration, you’ve finally convinced yourself that bankruptcy is the best way to deal with your debt.Since you are going to file bankruptcy to save your property, you want to know what will happen with those Bad Checks when you file for bankruptcy.
Each has its own qualifications and it is legal for the bank to place any type where the requirements are met, although bank policy may instruct that the type of hold placed be the one that holds the most funds the longest that can be applied legally.
As of February 27, 2010, there is only one check processing region for the entire United States. Regarding insurance checks, if the insurance check is drawn on an in-state bank funds will be available on the 5th business day; if the insurance check is drawn on an out-of-state bank funds will be available on the 7th business day.
The following items must have the first $5000 available for the Statutory, Large Deposit and New Account Hold by the first business day following the deposit: For each of these items, the item must be presented for deposit into the payee's account for it to receive expedited fund availability; when one of these checks is presented for deposit into a third party account, it loses its preferential treatment.
Also, the bank may require use of a special deposit slip or envelope for next-day availability of cashier's checks, certified checks, teller's checks, or state & local government checks; if it does so, it must notify customers and tell them how to obtain the special slip or envelope.
"Official Checks" or "Bank Checks" may not qualify as "cashier's checks" under Regulation CC, but they usually qualify for next-day availability as "teller's checks".
According to the regulation, interest-bearing accounts shall receive earnings from funds from the time they are collected by the depository institution, regardless of hold lengths.
Depending on the amount of the bad check written, a person can be prosecuted for a misdemeanor or even a felony.
Also, depending on the type of Bad Check offense in your state and the number of offenses committed, the potential criminal penalties for bad checks can range from a .00 fine to a ,000.00 fine with possible jail time of up to 10 years.
In the same manner, if an account owner is depositing into an account that has been open for less than 30 days but owns another account that has been open greater than 30 days, the New Account Hold cannot be legally placed.
There are certain items that present less risk to financial institutions and thus are subject to expedited availability under the stipulations of Regulation CC.
Depending on what state you live in, and what the local laws are where you live, the writing of a Bad Check is an unlawful act which can have both civil and criminal penalties.