Bankruptcy

Medical Records in Bankruptcy Court

By Chris Kramer

A recent report from the Milwaukee Journal-Sentinel Online describes a potential complication that might arise during a bankruptcy filing. Here?s a look at what happened and what it might mean for other filers.

Your Records in Chapter 13 Bankruptcy

When you file for Chapter 13 bankruptcy, you?re agreeing to the following:

• Committing to a repayment plan that lasts three to five years and satisfies part or all of your secured debt
• Completing two courses (the pre-filing credit counseling briefing and the pre-discharge debtor education course) designed to help you improve your relationship with money and credit
• Making public your records of debts and payments

It?s the last item on this list that has proved problematic. In the case of some Wisconsin bankruptcy petitioners, it seems, debt and payment information in medical bills that became part of the public record included details about doctor?s visits, procedures and medicines they used.

Now, according to sources, several Wisconsin residents have filed class-action lawsuits in state and federal court against Aurora Health Care Inc., the company reportedly responsible for submitting the detailed medical information.

Beyond Embarrassment

Bankruptcy filers who see their medical history become part of public record may have reason for embarrassment, but, according to reports, that isn?t the only reason this lawsuit has gotten attention.

Certain information (for instance, about treatment for past injuries) could prevent a filer from getting hired at a job in the future or pave the way to medical identity theft. And privacy laws often protect the disclosure of such information.

Should You Be Worried?

The good news here is that, while medical records included as part of a bankruptcy filing may have the potential to hurt your career or cause you embarrassment, the odds of anyone besides your lawyer, your bankruptcy trustee and the judge on your case seeing them is slim.

After all, such information appears as part of the loads of paperwork involved with filing a bankruptcy petition ? sifting through to find such details would be a daunting task.

Still, this story highlights one more reason why enlisting the help of an attorney when you decide to file for bankruptcy protection can be a crucial element of making sure you receive the protection and fresh financial start you?re seeking.

Additional Resources

2009 Medical Identity Theft Final Report (PDF)

Full post as published by The Bankruptcy Blog on January 12, 2010 (boomark / email).