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Home >> Checks/Money Orders >> Checks You Wrote
Will I Have to Pay It Back?
I was wondering how a bank writes off a bad checking account and if they are able to receive a tax write-off or file an insurance claim. In 2005, I was a really bad gambler and my girlfriend and I got this bright idea that she would write me checks off her closed account, and I would deposit them into my account. We did this and continued to do so over a two week period. My total, as stated by the bank was $8,500 overdrawn.
I finally came to and got help for gambling and also got charges against me for passing a bad check in Missouri. Twenty-four counts were brought against me. I thought they would have gone against the person who wrote the checks, but they went against me for receiving cash for them from the bank. The amount the prosecutor had was $11,000, and they would not show me proof of the checks they had on file. I contacted the bank and of course they couldn't find my account in their system and could not tell me the balance. The prosecutor informed me that they were prosecuting for all the checks the bank had turned over regardless if all the money was given to me, which it wasn't.
I finally accepted a plea in 2007, and have to pay back $12,938, but it is open-ended to the point that they will drop the amount if I can show the bank isn't out all that money. I have to pay $220 dollars a month in restitution, and while I am ready and willing to pay for my part, I just don't think it is right to give the bank more than they deserve. My case wasn't settled until two years after the events happened. What would the bank have done during that time to recoup their money? Anything you could tell me would be helpful. |
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 Any write-off on taxes would not affect your liability to the bank. Once the bank recovers any part of the debt it writes off, it will simply declare the recovery as income and pay taxes on it.
It is highly unlikely that the bank would be able to recover from an insurance policy. Most banks carry deductibles on their coverage much greater than the amount you say you owe. If insurance did pay any part of the sum, you'd then owe the amount of the payment to the insurance company, so you'd gain nothing. It might be reasonable for the amount of the restitution to be adjusted to reflect the actual amount owed to the bank, rather than the total of the checks.
Published on BankingQuestions.com 1/08/09
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