Legal Question in Bankruptcy in California
Checkwriting after filing
In 2002 my mother filed for chapter 7 bankruptcy she was granted a disscharge. Telecheck will not write off her debt with them can they do that? Her attorney contacted in writing that they are vilolating the law and she wrote to them faxed them a copy of her bankruptcy any help will be appreciated.
1 Answer from Attorneys
Re: Checkwriting after filing
My understanding about telecheck is that they are not reporting discharged debts, they are reporting the fact that a person wrote a "bad" check with insufficient funds. That is not something a bankruptcy can necessarily wipe out, even though the debt itself (fees owed from the bad check) may be discharged. I hope her attorney is successful but I have found that historically it is very difficult to get telecheck to remove any negative records like that.
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