Liberty Medical Home Supply Company Files for Bankruptcy

February 21st, 2013 by Reed Allmand

Liberty Medical Bankruptcy

Liberty Medical Supply, a home delivery health care products provider, filed Chapter 11 bankruptcy a midst pressure from creditors.  The company is known for providing diabetes supplies and products for a variety of medical aliments.  According to the company’s website, over 1 million Americans use their medical supplies on a daily basis.  Liberty Medical is said to have 9 affiliate companies that have also filed for bankruptcy protection.

The company President, Frank Harvey, confirmed the filing on Feb. 15. He says the company is using the filing to help them work through issues while day-to-day operations continue.  Documents related to the filing claim Liberty Medical has between $100 million and $500 million in liabilities.  Several creditors are disputing claims against the home delivery health care provider with close to $140 million being owed to CGS Administrators, and $14 million being owed to Medico Health Solutions.

Harvey feels that Chapter 11 is a useful business tool. He noted that some of the most successful businesses in the world have used it to sort out financial issues while helping improve future profit potential.  The filing will help give the company more time to deal with their outstanding debt, lessen pressure felt from creditors and restructure the business to improve financial growth.

Other issues have led to the filing including tax liability issues with its former parent company and overpayment liabilities by CMS (Center for Medicare and Medicaid Services). The company noted in bankruptcy documents it has up to 5,000 employees.




About Reed Allmand


Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand


Subscribe to our e-mail newsletter to receive updates.


Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients