Legal Question in Bankruptcy in California
bad checks and bankruptcy
can my employer be penalized for issuing a bad check before or after declaring bankruptcy?
3 Answers from Attorneys
Re: bad checks and bankruptcy
I'm not sure I understand the question. Was the check bad because of the bankruptcy filing or is that just incidental? Writing bad checks is a crime under California law.
Re: bad checks and bankruptcy
Yes. Knowingly issuing a bad check is not only (potentially) a crime, but if it is for wages, it subjects the employer to additional liability for damages. If the check is for wages, because wages are a priority claim in all types of bankruptcy, they have to be paid back, period.
Re: bad checks and bankruptcy
If the bad check was for wages that were owed you it probably wasn't a crime. However, it would be a priority debt. However, if the check was issued to induce you to do something. Then it probably is a crime. And if you performed labor. Then again it was a priority debt.