Care Credit and Bankruptcy

Posted on May 25, 2013. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy |

Our office is starting to see more clients with Care Credit as a creditor. Who are they ?

Care Credit is a credit card account, or line of credit, offered through GE Capital that doctor and dentist offices are offering to their patients, with or without health insurance, to pay for the uninsured costs up front. Once the patient signs up and is approved for the credit, then Care Credit pays the health care provider their charges and the patient then begins making payments on the account, typically on a monthly basis.

If the patient files bankruptcy, then the debt to Care Credit is required to be listed in the bankruptcy as an unsecured debt. In Chapter 7, this typically means that the debt to Care Credit is discharged. Since Care Credit has paid the health care provider, there would typically not be any debt to the health care provider to list in the bankruptcy petition, unless there were any other amounts owed to the provider once they were paid by health insurance and Care One. If the patient files Chapter 13 bankruptcy, then Care Credit would be listed as an unsecured creditor and paid back whatever percentage that unsecured creditors are being paid through the patients Chapter 13 plan.

As our health care world changes, we expect to see more creditors such as Care One and more questions from clients on how this debt would be affected by bankruptcy.

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

One Response to “Care Credit and Bankruptcy”

RSS Feed for Kentucky Bankruptcy Attorney – Call Toll Free Today 1-888-651-9353 or 270-651-7777 Comments RSS Feed

[…] wrote recently about credit cards marketed to consumers at doctor and dentist offices to be used to finance the […]

Where's The Comment Form?

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: