You are here:

Bankruptcy Law/Can debt for Durable Medical Equipment be discharged?

Advertisement

Expert: - 2/15/2010


Question
I recently filed for bankruptcy, and had the first meeting of the creditors last month.  Among the creditors I listed was a local medical supply store.  

In May of 2009, my insurance began paying monthly payments on a piece of equipment that was supposed to take 12 months to pay off a total of $900.  My insurance company paid three payments and then terminated in August, leaving me with the remainder of the bill.  The medical supply company claims that my insurance company was only renting the equipment, not making payments toward purchase, therefore the original debt of $900 still stands, and I am obligated to pay it entirely.  

The equipment is not in condition for return at this point, and I can not afford to pay the debt (I am disabled, homeless and without a job).  

After the first meeting of the creditors, the medical supply store received information that the debt was set for discharge, and they're now calling me and threatening to send my account to collections (not that it's going to make much of a difference - my phone will be shut off this week, and I don't see how collections people can really get to me, since I can't work and don't have an address other than e-mail).

My questions are:  Why wasn't this debt discharged?  Is it legal for a creditor to harass me now, not even 60 days after the first meeting of the creditors?  Couldn't they have shown up at that first meeting of the creditors to contest the discharge?  Once this hits collections, will I have any legal recourse to stop contact (assuming they can find me, of course)?

Thank you.

Answer
I am really sorry that you are facing so many problems. Hopefully I can help you with this particular question and lighten your load a bit.

I believe the debt is dischargeable. The piece of equipment still belongs to the store, and they are entitled to pick it up. I recommend that you offer to return it, regardless of it's condition, and point out that due to the bankruptcy you won't be paying them.

Hopefully this will do the trick. If it is turned over to a collection agency, just tell them the same thing.

Bankruptcy Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

©2012 About.com, a part of The New York Times Company. All rights reserved.