Tag Archives: bankruptcy
Wife Cannot Discharge Nursing Home Debt in Bankruptcy
By: Benjamin A. Schock, Attorney at Law. Macomb County, Michigan. The Unites States Bankruptcy Court for the Eastern District of Kentucky found that a woman who was contractually bound through a nursing home admissions agreement to apply for Medicaid benefits on behalf of her husband’s and who failed to do so cannot discharge the debt owed to the nursing home through an individual bankruptcy. In re Plybon (U.S. Bankr. E.D. Ky., No. 11–10146, March 9, 2012). When Glenna Plybon admitted her husband to a nursing home, she signed the admissions agreement for said facility as the responsible party. (Simasko Law Offices recommends that the individual signing said agreement indicates that they are signing said agreement under a color of authority such as a power of attorney to help prevent individual liability) The admissions agreement stated that Mrs. Plybon was required to pay a co-insurance amount and apply for Medicaid benefits on Mr. Plybon’s behalf. Mrs. Plybon applied for Medicaid on behalf of her husband, but did not provide all the information required to process the application, so Mr. Plybon’s Medicaid application was denied. While the application was pending, Mrs. Plybon failed to make any payments to the nursing home and the nursing home discharged her husband. The nursing home sued Mrs. Plybon for the outstanding balance on Mr. Plybon’s bill. When Mrs. Plybon filed for bankruptcy, the nursing home argued the debt was non-dischargeable. Under bankruptcy law, a debt is non-dischargeable if it is incurred by fraud or defalcation (the willful neglect of one’s duty). The U.S. Bankruptcy Court for the Eastern District of Kentucky held in this instance that the nursing home debt is non-dischargeable. The court ruled that Mrs. Plybon was contractually bound by the admission agreement to apply for Medicaid on Mr. Plybon’s behalf and her “failure to obtain the Medicaid benefits and the subsequent failure to meet the financial obligations for Mr. Plybon’s care were a breach of her obligations under the admissions agreement as the party responsible for Mr. Plybon’s financial assets and liabilities.”
