What to do if my family was loaning me 5k, so I deposited the check and paid off the debts but they stopped payment on the check?

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What to do if my family was loaning me 5k, so I deposited the check and paid off the debts but they stopped payment on the check?

The next morning my family member found out that there 401k loan did not get deposited like it was suppose to so they stopped payment. Now the bank says if I don’t pay in 10 days, they will file criminal charges against me and my family member. Can they do that or is this a civil matter?

Asked on January 26, 2013 under Bankruptcy Law, Alabama

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Passing bad checks is indeed a criminal offense. The charges can span over a few different violations including fraud.  I would contact the creditors and explain what happened and agree to make restitution - pay off the debt.  Then come up with the bank fees and speak with an attorney to be sure.  Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I suggest that you have a face to face meeting with the bank's manger over what transpired with a family member to discuss the fact that the 401 k loan did not go through as planned. From there, work on a way to get the money into the bank with the assistance of the family member who stopped the payment of the check (loan) to you.


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