Cities, businesses and individuals are not the only ones filing for bankruptcy. Today, there have been numerous hospitals that have closed down nationwide or are on the verge of closing down.Â These nationwide hospitals have filed or will probably file for Chapter 9 bankruptcy, as reported by Beckerâ€™s Hospital Review in an October 18, 2013 article.
A Chapter 9 bankruptcy can only be filed by municipalities which include towns, cities, schools, public hospitals and other institutions. Some of these public hospitals were forced to file for bankruptcy because there was a reduction in public funding, there was a rise of patients who did not have insurance, there was a rise of medical cost, or there was inadequate management of the hospitals.
Before these hospitals filed or file for bankruptcy, they must meet the Chapter 9 bankruptcy requirements. The requirements are: they must be public; they must be controlled by someone or an entity; they must have a plan that they will follow when they file for bankruptcy, and they must have contacted their debtors and try to work a plan with them to reduce the debt owed. These hospitals must be owned by an entity as this would allow the entity to take over the debt. Also, the hospital needs to show that it tried its best to reduce its debt.
Some hospitals are turning to bankruptcy because it prevents their debtors from filing legal action against them. In addition, when the hospitals come up with a bankruptcy plan, it must be approved by the court.
If you are facing personal financial hardships or if you are in debt, then bankruptcy may be a helpful solution. You should contact a qualified attorney to discuss your options. Mr. Lutzky of Jayson Lutzky, P.C. is a lawyer with 30 years of experience practicing in New York. He offers free in person initial consultations, so to set up a consultation, call 718-514-6619. You may visit his website www.MyNewYorkCityLawyer.com for more information.