The company (small business) I work for has several bad checks out. Unfortunately I am the one who signed them. The mamager pulls money out before the checks that I write clear. At this point in time I need to deal with this before anything else happens. So my question is; I want to send out cashiers checks for small amounts on each of the bounced checks today. If they are accepted by the companies we wrote them to then will that buy me time to pay them off without any legal action right away?
2006-09-08 03:26:31 · 5 answers · asked by GillSev 3 in Business & Finance ➔ Small Business
This is new to me. I DO NOT run my personal finances like this AT ALL!
2006-09-08 03:27:26 · update #1
It really depends on the amount of time the debts have been due. If the checks were recently bounced then chances are that yes the companies will be willing to work with you as it costs them money to place your account in collections. Collection agency's collect up to 50% of the debts if they collect so its worthwhile for the companies to work out a payment arrangement with you rather than send you to collections or take further legal action.
If the companies that received the bad checks have already sent your company to collections it is out of their hands at this point and they are required by law to tell you that you have to make any payment arrangements directly with the collection agency. Collections agencies are not that forgiving and will not allow as much flexibility in payment arrangements.
Keep in mind as well that some states authorize the receiver of a bad check to collect a service charge to compensate for bank fees and/or cost incurred as a result of receiving and collecting on a bad check. Our business is based in Florida and by law we are allowed to charge $25 if face value does not exceed $50, $30 if the face value exceeds $50 but does not exceed $300, $40 if the face value exceeds $300 or 5% of the face value of the check, which ever is greater.
2006-09-08 03:51:36 · answer #1 · answered by Tanya 2 · 1⤊ 0⤋
I would get your boss, the cpa, and yourself together in a room and have a state of business meeting. Find out where the cash flow problems are coming from..I.e. receivables being late, expenses being way too high, etc.. You may be able to solve the problem by having the owner get a line of credit to help with cash flow problems at certain times of the month.
It may be simply that the business is going down the toilet, and you are going to be working for free in the not too long future.
2006-09-08 10:47:19 · answer #2 · answered by shootermcavern 2 · 1⤊ 0⤋
You should contact the companies and let them know of the situation. They should be ok if you agree to pay in a timely fashion and avoid legal action.
2006-09-08 10:41:13 · answer #3 · answered by PHILLYGUY 3 · 1⤊ 0⤋
You are not responsible for your employers business ethics. Do not get involved with doing anything right now. Talk to your boss and see what he wants you to do. Do not make this decision, based solely upon what you think or want to do. I believe I'd find another job.
2006-09-08 10:31:29 · answer #4 · answered by skyeblue 5 · 1⤊ 0⤋
Check-out this business website. It will probably answer your question...
http://www.creditmanagementworld.com/legal/badcheck1.html
2006-09-08 11:14:18 · answer #5 · answered by nickdc1960 7 · 1⤊ 0⤋