How to cash a large check without a bank account?
February 29, 2012 7:43 PM Subscribe
Is it possible to cash a life insurance check (for a large amount), without having a bank account? What if the person has outstanding student loan debt?
posted by charlie22 to Work & Money (9 answers total)
Asking for a friend: said friend has an outstanding student loan, for around $30K. He's been "off the grid" for almost a decade, for this reason. No bank accounts, doing oddjobs for cash, etc. His father just passed away, and he's received a check for the life insurance claim in the amount of $19K. After living at home taking care of his father while he was ill, he wants to use this money to move, start over, etc. However, he's afraid to open a bank account to cash the check, afraid that he'll suddenly be "on the radar" and the money will be taken for repayment of his student loans and he'll be left with nothing.
Is there any way around this? Perhaps getting a cashier check from the insurance agency? Could the check he has now be signed/endorsed over to a trusted friend and deposited in their account? Perhaps the only option is for him to open his own bank account. If so, I believe the bank has to notify the IRS of any transactions over $10K. Can that money then be claimed for his student loan repayment? I'm completely ignorant of how he can workaround this - thanks for any help you can give, Mefites!!