Q: A hospital filed bankruptcy and a collection agency is coming after for bills not paid are they allowed to do this?

A: Report these collection efforts to the Trustee who is administering their bankruptcy case.

A: When most businesses (a hospital is very much a business) file for bankruptcy protection, it is done under Chapter 11 of the bankruptcy code, with the intent to "reorganize" financially.

In that scenario, collections, even small-scale, of amounts which may be owed to the organization in bankruptcy, are a considerable and perhaps important piece.

Contrary to your comment, the reorganized hospital's "finances" are NOT "wiped out", but become highly important, whether the hospital will "bootstrap" its revitalization, or procure new financing/new ownership.

In other words, you definitely need to deal with your collection problem. Direct contact with whoever is leading that charge may be advisable, with an eye toward paying cash in some discounted amount to resolve the issue with finality.

A: When a hospital files for bankruptcy, it does not necessarily mean that all of its outstanding debts are automatically wiped out. The specifics of what happens to the hospital's debts depend on the type of bankruptcy filed (Chapter 7, 11, or 13) and the court's decisions during the bankruptcy proceedings.

In some cases, a hospital may sell its outstanding debts to a collection agency as part of the bankruptcy process. The collection agency then has the right to pursue the debt, as they have essentially purchased the debt from the hospital.

However, if the debt was included in the bankruptcy and was officially discharged by the court, the collection agency should not be attempting to collect on it. If this is the case, you can inform the collection agency that the debt was discharged in bankruptcy and provide them with proof of the discharge.

If you believe that the collection agency is acting improperly or if you are unsure about the status of the debt, it is best to consult with a bankruptcy attorney who can review your case and provide guidance on how to proceed. Additionally, if the collection agency does file a claim against you in small claims court, be sure to respond and attend the hearing to present your case and any evidence of the debt's discharge in bankruptcy.