Managing savings accounts can already be a headache, couple that with careless check handling and you might even find yourself behind bars.Every state has laws for writing bad checks. The amount of the check is important. If you are putting an incorrect figure on the check and you don’t have the money in your bank account, you can be charged with a crime. Most creditors will not take you to the court in the very first chance after writing a bad check. They will keep sending the check to your bank account until the time it is proven that you are intentionally avoiding the debts. They will try to get a judgment in the court. If you are in a state where garnishment is allowed, the court might order to garnish your wages.

Not every state permits wage garnishment. Check with your state laws. The creditor has to follow your state laws before taking the case to the court. If a court hearing is fixed, don’t avoid the court date. You have to show your income ability to the judge and agree to make small payments. This way, you can avoid a possible judgment.

You should also check the statute of limitations of your state if any creditor has filed a case against you. If the debt is past the SOL period, you can request the judge to dismiss the case. You need to send a dispute letter to the creditor explaining the expiry of SOL if the creditor has threatened to take you to the court. You need to show proof that a letter was sent to the creditor in right time in order to avoid the judgment. If you are in the state of FL, TX or PA, your wages cannot be garnished. Wages of a federal employee cannot be garnished in any state. I would start making a small payment towards the debt in good faith and prove my every intention to pay the debts.

A check may bounce anytime due to unforeseen reasons. If you accidentally have bounced a check, contact the payee as soon as you have realized the error. The creditor will allow you to work out some alternative arrangements with them. They might charge a fee due to the check being returned by your bank.

This entry was posted on Wednesday, January 9th, 2008 at 8:25 pm and is filed under Laws, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.