I deposited a reimbursement check earlier in the week. The amount posted to my account but now the exact amount is taken out. My bank said that Itt's account had insufficient funds. How is it possible for money to be taken back after it posted?
14 replies (most recent on top)
Learn about clawback.
This is truly a sorry situation for all involved. Having a history both in education and the practice of bankruptcy law, what all will be facing is a simple asset collection process for the benefit of creditors, although there will likely be very little if any distribution to others beyond secure creditors, taxing authorities, and Chapter 7 costs of administration. Do not expect a Chapter 7 trustee to exercise control of school records, handling niceties like providing transcripts or issuing diplomas. Those are functions of educational institutions and ITT Tech no longer exists. What remains is the bankruptcy estate of the debtor corporation and the bankruptcy estates of its subsidiary organizations.
Best to move on and look at the adventures the future offers. Good luck.....
Umm, so like I took all of the direct deposit(s) and moved it to a different account. What rights does the Trustee have to MY money?
The national NACHA (The Electronic Payments Association) guidelines say that an employer is permitted to reverse a direct deposit within five business days. Assuming that no applicable state laws override that, this is the guideline the employer must follow. Once five business days pass, the employer is no longer allowed to reverse the direct deposit. If the employee is in a state where direct deposit reversals are restricted, such as California, the employee must either sign off on the reversal or the employee has to pay back the employer manually.
Want to be added to list of ITT creditors? You will be on page 4078 or beyond, according to this Indianapolis news report ....
"The Chapter 7 bankruptcy motion was filed in Indiana's Southern District Court. Chapter 7 protections provide for orderly liquidation of all ITT's assets under the direction of a trustee.
The same filing listed both ITT's assets and its liabilities between $100 million and $500 million. Those assets include six leased properties in Indiana. Their list of creditors is 4,077 pages long, not including students.
The bankruptcy was filed under the name of ITT Tech's parent company, ITT Educational Services. That parent company's other businesses include the Center for Professional Development, Breckinridge School of Nursing and Health Services, Daniel Webster College, Benchmarch Learning and Early Career Academy."
http://www.wthr.com/article/itt-tech-files-chapter-7-bankruptcy
That's how depositing a check works. If you deposit a check for an account with insufficient funds, the check "returns", the funds are deducted from your account, and you may be assessed a check return fee from your bank. Not your fault, of course, but this is the sad reality of depositing a check from a company no longer in business that just filed for bankruptcy.
Payroll direct deposit or a check deposit?
Yeah...my deposit from Sept 6th got reversed last night.
My check cleared and funds available.Depisited on Tuesday this oast week.
How many folks are offected
How would someone to added as a creditor to the bankruptcy filing? Several staff at my campus would be eligible.
If they knew that these checks were going to bounce you should be listed as a creditor in the bankruptcy filing. If you are not listed you can still be added to the list at this stage.
Same here
Banks typically make at least partial funds available before a check clears the originator's bank. Technically it's not really your money until the check clears so one should always be cautious about tapping into funds right after a check is deposited. With payroll and corporate checks we just take it for granted that the check is good. However, with ESI we have a special circumstance where their accounts were seized.