Collect on Bad Checks

"Relentless Collection Attorneys"

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 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.

Who ever signs the bad check  may face personal liability for payment of the check without ever having signed a personal guaranty.  The check’s signor’s liability is limited to the dollar amount of the check where as the liability of a guarantor is generally unlimited.

When we are suing a corporation or a trust which bounced a check, we will often immediately sue the corporation or trust seeking an ex parte bank attachment. After serving the bank and learning of whether the attachment caught any monies, we will then send out statutory demand letters in the required English and Spanish form and wait the statutorily required thirty days.

After the thirty days have passed without payment, we then seek to amend the complaint to add the individual who signed the check as a defendant, and yes, we will then seek an ex parte bank attachment against the new individual defendant.

When properly used, this statute can be a very effective collection weapon in your arsenal. Please contact us to discuss how the Law Offices of Alan M. Cohen LLC can help you collect your 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.

For help collecting on delinquent accounts from businesses anywhere which are subject to Massachusetts jurisdiction, call (508) 620-6900, email

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