Legal Question in Bankruptcy in Maine

Re: Bad check as debt

Thank you for your question. If you are the debtor in this scenario, then I would defer to the advice of your Bankruptcy counsel and decline to respond to your question further.

If you are the receipient of the check, did the check bounce? If it did, you cannot now pursue collection activity in violation of the stay, but can always ask the Court for permission to have the stay lifted to pursue a particular matter.

Was the payment only partial? Is the debt unsecured? Was any new consideration given when the check was written? If the check did not bounce, then the payment may be subject to the Trustee's powers to repossess the money as a "preference" and return the money to the estate.

It should also be noted that the Bankruptcy Code provides the opportunity for a creditor to convince the Court that the debt should not be discharged. This provision has time restrictions, so you should seek further advice from Bankruptcy Counsel immediately if you intend to follow up any further.