Health Insurance Subro
Plaintiff injured in auto wreck has health insurance pay bills. She is later discharged in bankruptcy, listing the health insurance as a creditor. Does this extinguish their subrogation claim?
Answer: Read In re Burnett, 447 B.R. 634 (Bkrtcy W.D. OK 2011). That case holds the subrogation claim was not valid against a settlement but only because the bills for which the health insurance company sought subrogation were incurred and paid "post-petition" (ie, after the bankruptcy was filed). It sure talks as if the subrogation would have been upheld if the subrogation claim preceded the bankruptcy, which I think is your situation.
Posted on Thu, November 3, 2011
by Sharon Coleman filed under