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Collect On Bad Checks

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 any person who has signed a bad check, as well as the company named on the check. Fortunately, our collections attorneys at the Law Offices of Alan M. Cohen & Associates LLC are well aware of this statute. We will and have used it where appropriate to seek another avenue to collect on our client’s bad debts.

When dealing with a small company, it is often the principal who signs the checks. Whoever it is that signs the bad check, they may face personal liability for payment of the check without ever having signed a personal guarantee. The check signor’s liability is limited to the dollar amount of the check, whereas the liability of a guarantor is generally unlimited.

When we are suing a corporation or a trust which bounced on a check, we will often seek an ex parte bank attachment. After serving the bank and learning of whether the attachment caught any monies, we may then send out the statutory demand letter in the required English and Spanish form, and wait the required thirty days. If this period of time passes with no payment for the bounced checks, we may then seek to amend the complaint to add the individual who signed the check as another defendant. Then we may seek an ex parte bank attachment against the new individual defendant!!

When properly used, this statute can be a handy collection tool in your arsenal. You can contact the Law Offices of Alan M. Cohen & Associates LLC if you are seeking an effective and ethical way to collect on your bad checks.

Success Story: How The Law Offices Of Alan M. Cohen & Associates LLC Helps Collect On Bad Checks

Our client rented out equipment to a company, who then 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 then turned the case over to us, and we took legal action and sued. Shortly after, the sheriff had informed us that the company in question had since gone 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!

In these types of cases, several attorneys may have given up, closed the file, and forgotten this matter. The Law Offices of Alan M. Cohen & Associates LLC did not.

Several months later, we sent the execution to the sheriff to make in-hand service on this 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 was able to collect the full amount of the execution, with cost and interest included!

Just as we were able to help this client, we can fight to help you collect on your bad checks. If you need assistance collecting on delinquent accounts from businesses anywhere subject to Massachusetts jurisdiction, call the Law Offices of Alan M. Cohen & Associates LLC today at 508-763-6604 or contact us online.

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