Bankruptcy and Returned Checks

There are many types of unsecured debt that can be included in a bankruptcy, such as credit card debt, medical bills, payday loans, signature loans, deficiencies on repossessed cars and foreclosed homes, old utility bills, old cell phone bills, etc. Many debtors inquire whether returned check fees can be included in the bankruptcy and discharged. These fees can be included in the bankruptcy and are dischargeable. The bankruptcy will eliminate that debt, and the debtor’s credit report should reflect that the debt has been charged off. The creditor can no longer contact the client or try to pursue a claim against the debtor in circuit court, file a lawsuit, and/or obtain a judgment against the debtor.

Just because the returned check fee has been discharged through the bankruptcy does not prevent the prosecuting attorney from pursuing a criminal case against the debtor in state court. This type of action cannot be prevented by the bankruptcy attorney, and the debtor should seek representation from a criminal law attorney in the event they are contacted by the prosecuting attorney. Because these actions are in two separate courts, they are completely separate actions. The bankruptcy cannot discharge the prosecuting attorney’s ability to bring an action against the debtor in criminal court. There are many instances where the prosecuting attorney does not become involved, but sometimes they wish to pursue an action based on their discretion. They may institute fines the debtor will be required to pay. These fines are also not discharged through bankruptcy, and a debtor must work with the prosecuting attorney’s office to discuss these issues. Again, this would be a separate issue from the bankruptcy, and the debtor would most likely want to speak to a criminal law attorney to discuss the debtor’s options immediately.

If you have any questions, please contact a St. Louis or St. Charles, Missouri bankruptcy attorney.