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Bounced Check

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hayes324

Junior Member
What is the name of your state (only U.S. law)? CALIFORNIA

I loaned money to an individual for her business and had a lien on her house. She already lost her house to foreclosure and declared personal bankruptcy.

She has intermingled funds between herself as an individual and her corporation, and considered them one and the same. She had once tried to repay me by a check drawn on her corporation, which then had payment stopped. I have a copy of the check with Payment Stopped on it.

The bankruptcy court is trying to delete us from the corporation's bankruptcy case by saying we are not corporate creditors. (There is a possibility the corporation may get some money to repay creditors.)

Could we use the returned check issued by the corporation as legal grounds that we are corporate creditors? Would the check itself be considered a contract with the corporation?
 
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