by Derek59 » Sat Oct 23, 2010 03:01 pm
I know a person who's insurance company pays them instead of the hospital, she then pockets all the money and files bankruptcy. she has done this a few times and was recently in the hospital for 2 months so she will be making bank! Is this legal?
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Lawyers Hamilton
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Lawyers Hamilton
Posted: Sat Oct 23, 2010 04:21 pm Post Subject:
Well, I'm betting that you don't have all of the facts. But first, health insurance rarely pays the person directly. So unless this was a liability accident, I doubt she is pocketing the money. Also, bankruptcy these days is not all its cracked up to be. She's digging a hole for herself that I doubt she will ever get out of. Not all debts are excused and I'm betting she would still owe a lot of money to the medical providers.
Again, I really don't think you have all of the facts.
Posted: Sat Oct 23, 2010 11:13 pm Post Subject:
she then pockets all the money and files bankruptcy. she has done this a few times
The path to bankruptcy court for most individuals requires a 10-year period of time between filings. So I strongly doubt your statement is accurate.
Posted: Tue Oct 26, 2010 10:47 am Post Subject:
I know a person who's insurance company pays them instead of the hospital, she then pockets all the money and files bankruptcy
I don't think it's that easy, the way you tried to make it easier for all. It has to go through a number of processes.
she has done this a few times and was recently in the hospital for 2 months so she will be making bank! Is this legal?
Again, doing it a few times, and staying unaffected is tough. Her financial history won't allow her to play with things that often..
Posted: Tue Oct 26, 2010 06:09 pm Post Subject:
I know a person who's insurance company pays them instead of the hospital
This alone is not that uncommon. There are a variety of "hospital indemnity" plans that pay $$/day when a person is hospitalized, unrelated to their actual medical expenses. What the person chooses to do with that money is up to them.
Honest-to-goodness health insurance DOES NOT work that same way. It is either a service plan that pays directly to the hospitals or doctors (HMO, PPO, Blue Cross, Blue Shield), or it is a "reimbursement" plan that (1) pays money to the insured AFTER the insured submits their "proof of loss" -- a PAID bill or (2) allows the insured to ASSIGN their benefits directly to the health care provider, who in turn bills the insured for any amount due after the insurance has paid its share (aka: balance billing).
The US Bankruptcy Court is not a "revolving door" system. Once there, unless incorporated, an individual generally cannot come back inside for "protection" more often than once every 10 years.
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