What is cheque bounce and why do you need a Lawyer for it?

When a cheque is presented before the bank and due to various reasons, such insufficient funds, account closure, or mismatched signatures, the cheque is then said to be dishonored by the bank. The cases of cheque bounce have been increased day by day even after the imposition of penalties. Sometimes it has been it that there are problems from the bank's side and they held the owner of a cheque liable, these are also the cases where you need to hire a lawyer.

The reasons because of which you may need a lawyer for cheque bounce cases are:

• Legal expertise: A lawyer who has insight about cases of cheque bounce can provide you guidance on the legal implications of a bounced cheque and advise you to take the best course of action.
• Representation in court of Law: Just in cases where the issue escalates to legal proceedings, a lawyer can represent you in court and defend your rights and interests.
• Negotiation with the payee: A lawyer can negotiate with the payee on your behalf for a good deal or with their legal representatives to reach a settlement outside of court, which will eventually prove to be a low cost option
• Knowledge of banking laws: Cases of Cheque bounce involve intricate banking laws and procedures, and a lawyer with expertise in banking law will prove only to be helpful.

Laws that deal with cases of Cheque Bounce in the country

Essentially, the cases of cheque bounce are dealt with the Negotiable Instruments Act, the act’s section 138, particularly deals with the bounced cheques, it imposes a penalty over the wrong doer. It penalizes every owner of a dishonored cheque. It usually takes place when the guarantor of a cheque lies about the amount that is in his/her bank account. After the amendments done in the year 2002, the punishment for a dishonored cheque is upto 2 years of Imprisonment or fine and in some cases both.

Do bounced cheques effect your credit score?

Yes, it does.

What will happen if a personal loan from EMI bounces?

If you fail to repay a personal loan, it not only decreases your credit score but also results in penalties.

What happens when you miss a home loan EMI due date?

When a loan EMI is missed being paid, the person who took the loan might face penalties.

What is the limitation for a cheque bounce case?

There are no certain limitations for a case of cheque bounce, it depends upon the jurisdiction.

Can you spend a bounced cheque?

No, you cannot spend a bounced cheque because it has been declared invalid by the bank.

Can my money be seize by a bank if I don't pay a loan?

Yes, if you fail to repay a loan, the bank might seize money or other properties to recover the debt.

Is it possible to deposit a returned cheque again?

Yes, but you need to ensure that it doesn't get bounced.

Is it possible to cancel a loan after I've lost the cheque?

In case you have lost a cheque for a loan, it can only be cancelled by the will of the lender, it's advisable to contact the owner and tell him the scenario.

How do we find if our bank is offering personal loans?

In order to find whether the bank is offering personal loans, you can visit their official website, contact their customer service, or visit the nearest branch for further inquiry.

What happens if a cheque is bounced?

If a cheque is bounced, then the owner of the particular negotiable instruments will face a term of jail or fines or both as per section 138 of the NI act. It is advisable to hire a Lawyer for your cheque bounce case.

What is the new rule of cheque bounce?

The new rule of cheque bounce may vary depending on the jurisdiction and banking regulations. To know more about the cheque bounce rules, hire cheque bounce Lawyers.

What is the process of cheque bounce?

When a person represents a cheque in bank with an amount written on it which exceeds the amount that is currently lying on their bank account, this process is called cheque bounce.

Why should you choose LawChef as your legal companion?

LawChef, like no other law firm would provide you unquestionably wonderful solutions handcrafted with deep and thorough research. We will provide you solutions that are best for you without a doubt. We have a team of experienced banking lawyers to handle your case and represent your in the court of law.