Final answer:
When a patient declares bankruptcy, you cannot continue to try and collect money owed to the practice. The United States Bankruptcy Code provides protection for debtors and imposes an automatic stay on debt collection efforts during the bankruptcy process. Medical debts can be discharged or repaid depending on the type of bankruptcy.
Step-by-step explanation:
When a patient declares bankruptcy, there are restrictions on collecting money owed to a medical practice. The United States Bankruptcy Code, specifically Chapter 7 and Chapter 13, provides protection for debtors and imposes an automatic stay on debt collection efforts once bankruptcy is filed. This means that you cannot continue to try and collect money from the patient during the bankruptcy process.
However, it is important to note that medical debts can be handled differently based on the type of bankruptcy and the specific circumstances. For example, in a Chapter 7 bankruptcy, medical debts are usually discharged, meaning the patient is no longer obligated to pay them. In a Chapter 13 bankruptcy, the patient may be required to repay some or all of their debts through a repayment plan.
To understand the specific rules and how they apply to your situation, it is best to consult with a bankruptcy attorney who can provide guidance on how to proceed in collecting debts during and after a patient's bankruptcy.