If a company has closed & there were checks floating around at the time of such, what, if any legal action can be taken against the person who signed?
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If a company has closed & there were checks floating around at the time of such, what, if any legal action can be taken against the person who signed?
If the owner of the business wrote checks prior to the doors closing, of which, he didn’t know was going to happen. The landlord came & padlocked the doors for being behind in rent — therefore causing the business to close. Because of this, no money could be deposited in the bank account to cover checks because no money was earned. This caused the checks to have Insufficient Funds. What could happen to the person who signed the checks if they weren’t an owner? If the person was an owner? Is there any legal action that can be taken against either person if the company was an LLC? This is in the state of Louisiana.
Asked on June 19, 2009 under Business Law, Louisiana
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I don't understand and you are not giving the full story.
1. If someone wrote bad checks knowing they wouldn't clear -- that is a crime.
2. If someone cashed checks knowing they wouldn't clear - that is a crime.
Call an attorney at www.attorneypages.com and see what can be done.
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