It’s in the news almost daily; companies going bankrupt or closing their doors leave thousands jobless. But what we don’t hear about is the massive amount of medical debt many former employees are saddled with. When a company announces that they are going bankrupt or closing, many employees rush out to get much needed medical care such as, check ups, medication and operations; but many end up with huge medical debts. Why? Because often when a company notifies its employees that they are going bankrupt or closing they have already stopped paying into medical insurance and the employees are no longer insured.
If your employer announces that they are going bankrupt or closing check with human resources to see if you are still covered under the medical insurance plan before you go out and rack up unexpected medical debt. It’s also important to know that when a company files for bankruptcy or closes its doors, former employees may not be eligible for COBRA especially if the company is being completely liquidated through bankruptcy and not restructuring debt in bankruptcy.
If you have inadvertently accumulated thousands of dollars in medical debt because your employer went bankrupt or closed its doors, speak with a bankruptcy attorney about your personal bankruptcy options.