In every state, writing a bad check is a crime. Aggressive district attorneys don't hesitate to prosecute, especially given that an estimated 450 million rubber checks are written each year. If you are prosecuted, you may be able to avoid a trial if your county has a diversion program where you attend classes for bad check writers. You must pay the tuition and make good on the bad checks you wrote.

Even if you escape criminal prosecution, you'll be charged a bad check processing fee by your bank. Many banks charge as much as $20 or $30. In addition, most creditors who receive a bad check can sue for damages. Before suing you, the creditor usually must first make a written demand that you make good on the bad check. If you don't pay up within approximately 30 days, the creditor can sue you. Damages recoverable by the merchant vary from state to state, but are often a minimum of $50, and sometimes more like a few hundred or a thousand dollars. See the below chart for the amount allowed in your state. But, keep in mind that these laws change. Check with your local state consumer protection office ( ) or find your state law to see if the amount has recently changed. (To search your state laws, visit Nolo.com's Legal Research Center.)