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NSF refers to non-sufficient funds. It occurs when a person does not have enough amount of balance in his / her bank account to cover the checks or the debit from the same account. It is a term used in the banking industry to indicate that a particular check can not be cleared or honored due to the non-availability of funds in the bank account of a person who issues the check. Such a check is often referred to as a bad check or dishonored check. In the United States, a Bad Check Restitution Program exists in many jurisdictions that allow recipients of bad checks to collect the funds from the local district attorney's office, regardless of the amount. When a check is dishonored, the recipient can take legal action (both civil and criminal) against the writer of the check. Also the bank or the company / person to which the check is written can charge a service fee to the issuer for the same reason. This article answers some of the questions asked on NSF laws and how they are associated with bankruptcy. Can person living on Social Security income file bankruptcy to get rid of NSF fees and other related debts?
Yes, the person can file bankruptcy. But In this matter, the person is safe as creditors cannot collect any debt because the person lives on government sponsored Social Security income and the government’s money can not be garnished under any circumstances. What happens when a trustee makes false allegation that he was issued with a dishonored check during a motion to dismiss under chapter 13 bankruptcy case?
Here, the person who has filed bankruptcy under chapter 13 can file a motion in the court to dispute the allegations made by the trustee as in most cases, trustees don’t accept checks but certified funds. Then the person can appear at the motion and appeal to the judge to strike the statements regarding the check from the record or to file an explanation. Can a person keep a car and include NSF checks while filing bankruptcy?
You can keep the car even after filing bankruptcy as long as the payments are paid off. You can also include the NSF checks in the bankruptcy as long as there are no criminal actions with which the checks are associated as bankruptcy does not include any criminal dismissals. Then the district attorney can set it up with the person to repay the NSF under its respective payment plan. Can I file a case against person who had issued me a bad check even though he has filed bankruptcy?
Filing bankruptcy will not affect the criminal aspect of the case if you decide to sue the person. However, the actual amount mentioned in the check can be discharged during the bankruptcy proceedings if the person who wrote it files for bankruptcy. The bankruptcy code does not let the person have a dismissal when the debt was obtained fraudulently. If the person wanted to gain the debt through exception, then he / she would need to hire a bankruptcy lawyer. A check is returned to a person for NSF when the value mentioned on the check exceeds the amount in his / bank account. Then the person could consider filing bankruptcy if he / she is in debt. To get a proper assistance on such issues, you can always ask a bankruptcy lawyer.
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NSF, what is NSF, NSF rules, NFS laws,
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