Theft by Check in Texas: Penalties, Defenses & Expunction

Theft by check in Texas is a criminal offense, not just a bank problem. Under Section 31.03 of the Texas Penal Code, using a check you know will bounce to pay for goods or services is prosecuted as theft, with punishment scaling from a $500 fine for small amounts up to life in prison for checks of $300,000 or more.¹ A conviction also carries civil liability and can lock you out of the banking system for years.

When a Bounced Check Becomes a Crime

The line between a civil debt and a criminal charge is knowledge. Prosecutors have to prove you knew the account lacked sufficient funds when you handed over the check. A check that bounces because of an unexpected hold, a delayed deposit, or a bank error is not automatically criminal.¹

The offense reaches anyone who obtains property or a service by issuing a check drawn on an account with insufficient funds to cover both that check and any other outstanding checks against the account. It applies to personal checks, business checks, and similar payment orders.²

How Prosecutors Prove You Knew

Proving what someone knew at the moment they wrote a check is hard, so Texas gives prosecutors a shortcut. Section 31.06 lists several situations that create prima facie evidence of intent, meaning the court can treat the fact as proof of intent unless the defendant offers evidence to rebut it.

The Demand Letter and the 10-Day Rule

Once a bank refuses a check for insufficient funds, the recipient can send a formal written demand for payment. The notice must go by first-class mail with an affidavit of service, or by registered or certified mail with return receipt requested, to the address on the check, in the bank’s records, or in the recipient’s records.²

The letter must contain specific statutory language warning that failure to pay in full within 10 days after receipt creates a presumption of criminal intent and may lead to prosecution. Texas law presumes the notice was received no later than five days after mailing. If the check writer does not pay in full within 10 days of receipt, the court can presume they intended to steal when they wrote the check.²

Partial payment does not defeat the presumption. You have to pay the full amount inside that 10-day window.

No Account at All

If you had no account with the bank when you wrote the check, the presumption applies without any demand letter. Writing a check on a nonexistent account is treated as strong evidence of fraudulent intent on its own.²

Stop-Payment Orders

The statute also covers a common workaround: getting the goods, then calling the bank to stop payment. If the bank refuses payment after a stop-payment order, the recipient demands payment or return of the property, and you fail to comply within 10 days, the court can again presume intent to steal.²

Penalties by Check Amount

Theft by check follows the same punishment scale as any other theft in Texas. The dollar amount drives the offense level.

Less than $100: Class C misdemeanor. Fine up to $500, no jail time.¹
$100 to $749: Class B misdemeanor. Up to 180 days in county jail and a fine up to $2,000.
$750 to $2,499: Class A misdemeanor. Up to one year in county jail and a fine up to $4,000.
$2,500 to $29,999: State jail felony. Between 180 days and two years in a state jail facility and a fine up to $10,000.³
$30,000 to $149,999: Third-degree felony. Between 2 and 10 years in prison and a fine up to $10,000.⁴
$150,000 to $299,999: Second-degree felony. Between 2 and 20 years in prison and a fine up to $10,000.⁵
$300,000 or more: First-degree felony. Between 5 and 99 years or life in prison, and a fine up to $10,000.⁶

One detail worth flagging: the state jail felony tier carries a mandatory minimum of 180 days behind bars. A judge cannot sentence someone at that level to no confinement the way they can with a misdemeanor.³

Multiple Checks Can Be Added Together

If several bad checks are part of the same scheme or a continuing course of conduct, prosecutors can aggregate the amounts and charge one larger offense. Five checks of $1,000 each, written to different stores over a few weeks as part of the same pattern, can be charged as a single $5,000 theft, which is a state jail felony rather than five Class A misdemeanors.⁷

Defenses That Work

The presumption of intent is rebuttable, and several defenses come up regularly.

Post-Dated Checks

Section 31.06 explicitly excludes post-dated checks from the presumption. Writing a check dated for a future date signals that the money is not in the account today, which cuts against any claim of deception. Prosecutors can still pursue the case, but they have to prove intent through direct evidence rather than the shortcut.²

A Flawed Demand Notice

The presumption depends on the notice being properly sent and containing the exact statutory warning language. A letter sent to the wrong address, never actually mailed, or missing the required warning does not trigger the presumption. Errors are common when merchants handle the notices themselves rather than routing them through a district attorney’s office.

Timely Full Payment

Paying the full amount within 10 days of receiving the demand letter prevents the presumption from ever arising. It is the cleanest way to stop a case from moving forward. Again, partial payment does not count.

Honest Mistake

If you genuinely believed the funds were there, that belief is a defense. Bank errors, delayed deposits, unauthorized withdrawals by another account holder, or a reasonable misunderstanding of your balance can all undermine the knowledge element. Once the presumption has attached, though, denial alone is not enough. You will need affirmative evidence of good faith.

Civil Liability and Hot Check Divisions

The criminal case is only half the exposure. The holder of a dishonored check can also pursue you civilly for the face value and charge a processing fee of up to $30.⁸

Many Texas district attorney’s offices run hot check divisions dedicated to these cases. They typically contact the check writer and offer a chance to pay the face value plus administrative fees to the county before formal charges are filed. For someone who bounced a check unintentionally, this route can avoid a criminal record. The window is narrow, though. Once the DA’s office decides to prosecute, the informal option is gone.

Long-Term Consequences

Banks and credit unions screen new customers through ChexSystems. A dishonored check or related negative banking history generally stays on a ChexSystems report for five years, which can make it hard to open a checking account anywhere during that period.⁹

Expunction

Texas permits expunction only in limited situations: acquittal, a pardon, or dismissed charges that never resulted in conviction. A conviction for theft by check does not qualify.¹⁰

Orders of Nondisclosure

Deferred adjudication opens a different door. If you completed deferred adjudication rather than being convicted, you may qualify for an order of nondisclosure, which seals the record from most public background checks. For a misdemeanor theft by check, you can petition immediately upon discharge and dismissal. For a felony-level charge, the waiting period is five years from the date of discharge.¹¹

That distinction matters when negotiating a plea. Deferred adjudication is the difference between a record that can eventually be sealed and one that stays visible for good.

1
State of Texas. Texas Penal Code 31.03 – Theft
2
State of Texas. Texas Penal Code 31.06 – Presumption for Theft by Check or Similar Sight Order
3
State of Texas. Texas Penal Code 12.35 – State Jail Felony Punishment
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State of Texas. Texas Penal Code 12.34 – Third Degree Felony Punishment
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State of Texas. Texas Penal Code 12.33 – Second Degree Felony Punishment
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State of Texas. Texas Penal Code 12.32 – First Degree Felony Punishment
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State of Texas. Texas Penal Code 31.09
8
State of Texas. Texas Business and Commerce Code 3.506
9
HelpWithMyBank.gov. How Long Does Negative Information Stay on ChexSystems and/or EWS Consumer Reports?
10
State of Texas. Texas Code of Criminal Procedure Art. 55.01
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State of Texas. Texas Government Code 411.0725