Is it theft if I close my bank account before paying off loan?
Bad checks are covered by both criminal and civil law. To be prosecuted criminally, knowledge of insufficient funds is required. Money damages may be recovered in a civil case. In a civil claim, in event of failure to make payment after demand, the amount owed, together penalties, bank and court costs and reasonable attorneys' fees, may be ordered. A breach of contract suit may also be possible. After a judgment remains unpaid, the unpaid judgment may be used to create a lien on property of the judgment debtor.
Please see the following TX statute:
§ 32.41. ISSUANCE OF BAD CHECK. (a) A person commits an
offense if he issues or passes a check or similar sight order for
the payment of money knowing that the issuer does not have
sufficient funds in or on deposit with the bank or other drawee for
the payment in full of the check or order as well as all other checks
or orders outstanding at the time of issuance.
(b) This section does not prevent the prosecution from
establishing the required knowledge by direct evidence; however,
for purposes of this section, the issuer's knowledge of
insufficient funds is presumed (except in the case of a postdated
check or order) if:
(1) he had no account with the bank or other drawee at
the time he issued the check or order; or
(2) payment was refused by the bank or other drawee for
lack of funds or insufficient funds on presentation within 30 days
after issue and the issuer failed to pay the holder in full within
10 days after receiving notice of that refusal.
(c) Notice for purposes of Subsection (b)(2) may be actual
notice or notice in writing that:
(1) is sent by registered or certified mail with
return receipt requested, by telegram with report of delivery
requested, or by first class mail if the letter was returned
unopened with markings indicating that the address is incorrect and
that there is no current forwarding order;
(2) is addressed to the issuer at his address shown on:
(A) the check or order;
(B) the records of the bank or other drawee; or
(C) the records of the person to whom the check or
order has been issued or passed; and
(3) contains the following statement:
"This is a demand for payment in full for a check
or order not paid because of a lack of funds or insufficient funds.
If you fail to make payment in full within 10 days after the date of
receipt of this notice, the failure to pay creates a presumption for
committing an offense, and this matter may be referred for criminal
(d) If notice is given in accordance with Subsection (c), it
is presumed that the notice was received no later than five days
after it was sent.
(e) A person charged with an offense under this section may
make restitution for the bad checks. Restitution shall be made
through the prosecutor's office if collection and processing were
initiated through that office. In other cases restitution may,
with the approval of the court in which the offense is filed, be
made through the court.
(f) Except as otherwise provided by this subsection, an
offense under this section is a Class C misdemeanor. If the check
or similar sight order that was issued or passed was for a child
support payment the obligation for which is established under a
court order, the offense is a Class B misdemeanor.
(g) An offense under this section is not a lesser included
offense of an offense under Section 31.03 or 31.04.