I gave a company a check for a product. However I have not received the product, and the company has closed and filed bankruptcy. They have not cashed the check yet, and I cannot get anyone to sign the indemnification form. My bank is not willing to put a stop payment on the check. Is there any way that I can place a stop-payment on the check or otherwise ensure that they do not receive my money, if I do not receive the product?
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If you wrote a personal check and you decide to place a stop payment, your bank should not object. They have no real decision in the matter. I would ask for a supervisor at the bank, and follow the instructions they originally provided you on the steps necessary to effect a stop payment order. These fall under the Uniform Commercial Code, Section 4-403, in most states. Failure on the banks part to allow you to place a stop payment may make them liable.
You also need to consider your actions. In some cases a stop payment request can lead to a theft by check claim, except that you have not received any goods or services. An attorney could easily consult with the debtor's attorney or Trustee and determine if your check is being held as an asset of the company. This isn't likely, but it may be worth asking about.
Published on BankingQuestions.com 11/16/07
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If you wrote a personal check and you decide to place a stop payment, your bank should not object. They have no real decision in the matter. I would ask for a supervisor at the bank, and follow the instructions they originally provided you on the steps necessary to effect a stop payment order. These fall under the 