Bankruptcy

Bankruptcy Won’t Save You

When a patient keeps an insurance check and files bankruptcy, I can file a petition in Bankruptcy Court opposing discharge of the amount of the insurance proceeds wrongfully withheld on the grounds of conversion. Often I don’t even have to go this route. Since most attorneys who handle personal bankruptcy charge minimal fees, the last thing they want is a contested bankruptcy action. I will call up the bankruptcy attorney and advise him or her of the kept insurance check and my willingness to file the petition opposing discharge. The result is almost always an agreement which is filed in Court and approved by a Bankruptcy Judge omitting the insurance proceeds from Bankruptcy discharge.