Bad Check Laws In Indiana

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Some people today write a check and then do not have adequate funds in their bank account to cover the expense. In order for someone to be prosecuted for writing bad checks in Indiana, several conditions must be met.

In Indiana, it is illegal to write a check that you know has insufficient funds to cover the amount of the check. You cannot write a check on an account that is no longer open or an account that does not exist. In Indiana, if you write bad checks, it is known as check deception, which carries fines or jail time.


If you write a check in Indiana that is less than $2500, it is a class A misdemeanor. According to the state law, the maximum sentence that you could receive is a year in jail and a fine of $5,000.

If the amount of the check that is over $2,500 and the possessions collected includes a vehicle, it is considered to be a class D felony. In this case, you could possibly receive the maximum sentence of three years in prison and a $10,000 fine.

Merchants or individuals in Indiana who have been victims of check deception have the right to sue for civil damages. Indiana laws state that victims can sue for damages up to three times the check amount. The maximum that can be received is $500 for each check, the cost of an attorney and interest fees of 18 percent for each year.

In various parts of Indiana, first time check deception offenders have the ability to attend a bad check diversion program and avoid a jail sentence and fine. Under this program, you must pay back the amount that you wrote for the check within a certain amount of time. You also are required to attend a worthless check prevention class.

If you wrote a bad check in Indiana, you could ask for the charge to be dismissed if you paid back the amount of the check within 10 days. You also cannot be charged if you were not aware that your account had insufficient funds.

Below are the civil and criminal penalties for writing a bad check in Indiana under Code TITLE 26. – COMMERCIAL LAW, ARTICLE 2. – COMMERCIAL TRANSACTIONS, Chapter 7. – Penalties for Stopping Payments or Permitting Dishonor of Checks.

A person who has allowed a check to be dishonored is not liable under this chapter if they settle the amount due to the payor within ten days after the holder of the dishonored check has given notice that the check was not paid by the financial institution.

Civil Penalties: Triple amount of check not to exceed $500 plus amount of check, attorneys' fees of not less than $100 and interest at 18% annually.

Criminal Penalties: If a bounced check is written for an amount under $2,500, you will be guilty of a Class A misdemeanor and could be fined up to $5,000 fine or up to one year in jail, or both. Amounts $2,500 or more may be considered a Class D felony that can carry a jail/prison term of six months to three years and a fine up to $10,000. Please note that some counties in Indiana can charge you with a felony for checks written out for less than $2500.



For more information on bad check laws and for criminal and civil penalties in other states for writing bad checks, please read Bad Check Laws

Check with your state statutes for the most current information on Indiana bad check laws.

You may want to also read Getting A Checking Account While On The Chex System

Learn how to Prevent Overdraft And Bounced Check Fees

Although all information has been written in good faith and has been reviewed, please email us at [email protected] to report any inaccuracies.