Business relationships and CH 7 (auto insurance/medical supplies)

[Grumpy2]

I am going to be filing CH7 shortly. I'm worried about two business relationships that I'd like to keep, but it might not be possible. First, I currently have an outstanding auto claim for an accident where I was at fault. It has been open for over a year. I am going to name the other party and insurance company as creditors in my filing. At this point, will the insurance company drop me? The irony is because I have an outstanding claim, other companies quote me 50-75% higher than my current company. Ridiculous....

The next one is my DME for cpap supplies. This is not normally something that would have a debt and I typically pay the $40 copay every time. They went through some system change and were "unable" to bill copays for over a year. So now they want $500 bucks. That isn't going to happen and the balance wouldn't be there if they could have figured out how to take payments etc wtih the new system. Is it typical of a business like that to not want to do business with me after I name them on my ch7 as a creditor? They kind of have a monopoly in my region, which has my attention at least.

Many thanks.

[Drazil65]

We had no/or have no issues with insurance companies due to bankruptcy. Never affected us with them BUT, we did not have a pending claim where we were at fault. You would have that problem with trying to get other insurance whether you were filing or not so that is probably something you will just have to accept with a claim like that. Your insurance might drop you regardless because of this claim (by raising your rates you will be forced to go elsewhere) and the fact that you filed will just be bad timing on your part (in their opinion and use that info as underlying).

With DME, if you stop making payments on your unsecured payments in preparation for filing, could you pay for the cpap stuff then you would have zero balance with them? This would be a medical necessity and medical copay situation so not like you were paying a creditor in favor.

Have you addressed these concerns with an attorney? Not that he could do anything about it but probably is familiar how this all might play out so you can be aware!

[LadyInTheRed]

I am pretty sure that they can't cancel your insurance policy solely because of the BK. Here's the CA law on insurance cancellation: http://www.leginfo.ca.gov/cgi-bin/di...file=660-669.5

I suspect DME will sell you the CPAP supplies, but will require payment of all co-pays up front, assuming they have figured out how to do that by now. If they won't do business with you, there are plenty of medical supply companies that will ship supplies to you. Just search the internet.

[Grumpy2]

Thanks for the help. Some people here should be getting paid for this