QUESTION
How and for what time period can we bill the patient and when can't we?
Asked on Dec 15th, 2016 on Bankruptcy - California
More details to this question:
I work for a hospital and we are trying to figure out when it is ok to bill bankruptcy patients. We know that you cannot bill for any accounts occurring prior to the filing date until/unless the case is dismissed. If the case is officially discharged (usually 3-5 years later), the accounts are forever uncollectable. However, what about the accounts incurred after the filing date? Can we bill for them immediately or must we wait until the guarantor's bankruptcy case is officially closed, even if that's 5 years in the future? Being a hospital, we cannot control who creates new debt or when since we cannot deny a patient treatment due to being in bankruptcy like a bank can deny a loan. In other words, for what dates and time periods is the automatic stay effective for?
4 ANSWERS
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With apologies if this sounds less than civil, but a hospital can afford to pay its lawyer to research this question. This site is not intended to replace lawyers for those who can afford them.
Answered on Feb 14th, 2017 at 6:43 AM
You should review this matter with a collection law firm or lawyer. You seem to be talking about a Chapter 13 filing (payments are 36 to 60 months to the Chapter 13 Trustee). Debts after the date of filing are not part of the Chapter 13 filing. Debtors are legally obligated for these debts, and they are not part of the original Chapter 13 filing (which only covers debts up to the date of filing). It is my understanding that the automatic stay does not apply to the post petition filing matters. Lastly, the six year statute of limitations is stayed while someone is in a Chapter 13. So if the case is dismissed, you can collect these matters since you add the time period they were in a Chapter 13 to the statute of limitations which stopped running on the date of filing. A good collection lawyer will cover these matters with you.
Answered on Feb 14th, 2017 at 6:43 AM
Frankly, a hospital ought to have its own lawyer to answer these kinds of questions and not put the responsibility for making this determination on underpaid accounting and collection staff. Pass the buck up the chain of command ? that is why they are paid the big bucks!
Answered on Feb 14th, 2017 at 6:43 AM
Post petition debt is not discharged and you may bill as per custom.
Answered on Feb 14th, 2017 at 6:42 AM