What should the office do after finding out that a patient has declared bankruptcy?

When a patient declares bankruptcy, the appropriate action for a medical office is to file a claim with the courts. This is essential because, during bankruptcy proceedings, creditors must formally file claims to recover any debts owed to them. This process allows the medical office to potentially receive some payment based on the bankruptcy type and the patient’s financial situation.

Filing a claim is crucial not only because it adheres to legal protocols, but it also ensures that the office is recognized as a creditor in the bankruptcy case. The court will process these claims, and the medical office may be able to recover a portion of the outstanding debt according to the bankruptcy court's determination of what is fair and just based on the patient's assets and liabilities.

Other methods, such as sending a follow-up collection letter or discussing settlement amounts over the phone, may not be effective after a bankruptcy declaration. Once a patient enters bankruptcy, certain automatic stays take place that prevent creditors from pursuing collection efforts outside of the bankruptcy process. Additionally, writing off the amount may be a consideration later, but it should not be the immediate action before exhausting all proper channels like filing a claim.