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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I had some work done after a storm on the electric. The bill

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I had some work done after a storm on the electric. The bill was 3000 and was to be paid by the insurance. Didn't happen that way. So we agree and payments. I gave him a check that we both knew was no good for the total amount as collateral. . Made some payments and fell behind. He tries to cash the check knowing that it was no good. Put me in nsf at the bank.. I call the bank and stop payment on it.. some months later saw him again said I would continue payments but cashing the check was not cool. So made a few more payments and fell behind again. Now he is saying he is take the check to the court house and saying it was a bad check. What are my rights?
Thank you for your question.

The problem is that the arrangement was not legal to begin with. You cannot write a check for the entire amount due and reserve the right to have the check not cashed. The law states that when you write a check, you have to have the money to back the check up. Otherwise you are liable for breach of contract and potentially fraud on the check (i.e., it is a hot check).

Your rights are that the amount due on the payment represented by the check should be reduced by the amount of payments you have made.

Did you have a written agreement regarding the payment arrangement, or was this all done orally?
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Customer: replied 3 years ago.


How long ago did you write the check?

How long ago did he first try to cash the check?

Has he actually sued you yet?
Customer: replied 3 years ago.

3 to 4 years ago. 2 years ago. No

This is likely still within the statute of limitations.

You can assert a defense to this claim of "settlement." In other words, he already attempted to cash the check, and notified you that the check would not cash. At that point, he agreed to accept payments rather than the check. This means that the issue has been settled. He cannot now sue you for the check. He can only sue you for the remaining payments due.

If he attempts to sue or have the DA prosecute for a bad check, you will need to give testimony that you and he agreed to settle the matter through an alternative payment arrangement and then show proof of the payments you have made to him. This should result in the matter being dropped.
Customer: replied 3 years ago.


My pleasure.

I wanted to follow up with you regarding your issue with the contractor and the outstanding payments. Has the contractor taken any action that you have concerns about?

Have you contacted him?

Please let me know if you have any further questions which we can answer.