If a check dated prior to the filing date has not been deposited will it be paid? What about any checks that were returned as unpaid prior to the filing date?
The Company sincerely apologizes for any returned checks that occurred. The Company intended to honor all of the checks it had issued and believed it had sufficient funds to do so. Nevertheless, any uncleared check issued before the filing date is a payment for pre-petition goods or services, and checks for pre-petition goods and services cannot be honored subsequent to the filing date. If a check is not honored, the holder may follow the claims process to submit a claim to the bankruptcy court for the amount owed.
Related Questions
- Does an institution have to accept substitute checks presented to it for collection or returned to it as unpaid?
- Can the amount required to be deposited under Section 17(1A) be paid after the filing of the appeal?
- Does TCF charge a fee when a check I have deposited or cashed is returned to TCF unpaid?
