Collect on Bad Checks

Closed handcuffs

Signing A Corporate Check Drawn On Insufficient Funds May Create Liability Which You Can Exploit To Recover Payment Of An Otherwise Uncollectable Debt

A little known statute arguably allows you to sue the person who signed a bad check, as well as the company name on the check. Fortunately, we are well aware of this statute and use it where appropriate to seek still another avenue to collect your bad debts. When dealing with a small company, it is often the principal who signs the checks. If the principal signs a bad check, he or she may face personal liability for payment of the check without ever having signed a personal guaranty. When and how you use its provisions is a matter of personal choice. However, when properly used, this statute can be a very effective collection weapon in your arsenal. Please contact us to discuss your options for collecting on bad checks.

Success Story: Our client rented out equipment to a company. The company stiffed our client for almost $16,000.00. Along the way, the company had made payment with a check drawn on insufficient funds. Our client turned the case over to us and we sued. The sheriff had informed us that the company was out of business. After defaulting the company, we obtained a judgment for approximately $19,000.00 including principal, interest and costs. But still no money!

Some attorneys may have given up, closed the file, and forgotten the matter. We didn’t.

Several months later, we sent the execution to the sheriff to make in-hand service on the deadbeat corporation’s president. The president had signed and delivered the bad check thereby, creating a personal liability. Through amicable discussions, and the use of a persuasive sheriff, the debtor’s president signed a settlement agreement. Within the agreed upon time, my client received the full amount of the execution, with costs and interest.

The Law Offices of Alan M. Cohen LLC represents clients and sues debtors in Cambridge, Framingham, Lowell, Woburn, Middlesex County, Boston, Suffolk County, Fall River, Easton, Taunton, New Bedford, Bristol County, Springfield, Hampden County, Brookline, Dedham, Wellesley, Norfolk County, Brockton, Plymouth County, Worcester, Worcester County, Barnstable County and throughout Massachusetts.

For help collecting on delinquent accounts from businesses anywhere which are subject to Massachusetts jurisdiction, call (508) 620-6900, use the form to the right or email alanmcohen@collections-law.com.

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