Can uncollectible patient accounts be sold to a third party?
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Can uncollectible patient accounts be sold to a third party?
Asked on February 13, 2012 under Bankruptcy Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the accounts have been written off as uncollectible--that is, if the creditor has actually taken a tax loss on the account--then no. When an account is written off and a tax loss taken, it is extinguished, at least from the point of view of collections efforts. (However, the default does not go away as a black mark against the debtor's credit.)
On the other hand, if the account was not actually written off and no loss taken, then even if, as a practical matter, it was uncollectible, it can be sold assuming anyone can be found who wishes to buy it.
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