What is considered issuing bad checks?

Issuing a bad check refers specifically to writing a check that cannot be processed because the account holder does not have enough funds to cover the amount written on the check. This situation creates a liability for both the account holder and the recipient of the check, as it can result in penalties, fees, and possible legal consequences.

When a check is issued without sufficient funds, the bank will typically return it unpaid, leading to insufficient funds (NSF) fees for the account holder and potential complications for the person who accepted the check as payment. This action is considered fraudulent, particularly if the issuer knew that their account lacked the necessary funds at the time of writing the check.

In contrast, writing a check from a joint account does not constitute issuing a bad check, nor does writing a post-dated check, which is simply intended for a future date. Using a check not from a recognized bank could raise issues related to the legitimacy of the payment, but it does not automatically equate to issuing a bad check unless there are also insufficient funds. Thus, issuing a check without sufficient funds is the clear definition of a bad check.