What to do when your Cheque get Bounced ?

A cheque bouncing means that the cheque was not able to be processed or cleared due to insufficient funds in the account from which it was written. This can occur when the account holder does not have enough money in their account to cover the amount of the cheque, or when there are other issues with the account that prevent the cheque from being processed. Bouncing a cheque can have serious consequences, including fees from the bank, damage to the account holder’s credit score, and legal consequences if the cheque was written with the intent to defraud.

The process for legal action on cheque bouncing can vary depending on the laws of the jurisdiction in which the cheque was written and presented for payment. In general, however, the process may involve the following steps:

• The bank or financial institution that received the cheque determines that it cannot be processed or cleared due to insufficient funds or other issues.
• The bank or financial institution sends a notification to the account holder and the payee (the person or business to whom the cheque was written) indicating that the cheque has bounced.
• The payee may choose to take legal action against the account holder for the bounced cheque. This may involve filing a complaint with the court and serving the account holder with a summons to appear in court.
• If the account holder fails to appear in court or contest the allegations, a default judgment may be entered against them. If the account holder contests the allegations, the case may proceed to trial.
• If the court finds in favor of the payee, it may issue a judgment requiring the account holder to pay the amount of the bounced cheque, plus any fees or costs associated with the legal action.
• The payee may then take steps to collect on the judgment, such as garnishing the account holder’s wages or placing a lien on their property.

It’s important to note that cheque bouncing can be a criminal offense in some jurisdictions, and the account holder may also face criminal charges in addition to civil action.