Medical Reimbursements

September 24th, 2011 by Questions

Can anyone please tell me if medical reimbursements are included toward my income during a bankruptcy?

These would be where I have had to pay for physiotherapy during my sessions to rehab a back injury (during my bankruptcy) and had them reimbursed by my medical coverage after the fact.

There is no net gain here as I had to pay for my treatments before getting the money back (which is actually less because I am not reimbursed 100%).

Posted from: British Columbia


One Response to “Medical Reimbursements”

, A licensed trustee said:

Here’s what you should be doing if/when you report your income in bankruptcy:

1) report the total expense you paid for the medical treatment (if you can deduct a treatment for taxes then you may claim in your bankruptcy)

2) report the re-imbursement

If, as you say, the expense is more than what you are reimbursed for then this will reduce your overall income and therefore reduce your obligation to pay surplus.

For example: You pay $250 for treatement and your insurer re-mburses you 80% or $200. The $50 you aren’t reimbursed for reduces your incmoe before surplus is determined.

If you are still unsure speak to your trustee about this.

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