The Effect of Bankruptcy on COBRA Insurance
Bankruptcy has a number of different effects on COBRA insurance that you're going to need to be aware of. Learn about the effect of bankruptcy on COBRA insurance with help from the President of The Stratford Financial Group, Inc. in this free video clip.
Promoted By Zergnet
Hello, I'm Jeffrey Ingalls, president of Stratford Financial Group and Stratford Employer Services in Wayne, New Jersey, and right now we're going to talk about: The Effect of Bankruptcy on COBRA Insurance. When speaking about bankruptcy as it relates to COBRA, we need to talk about personal bankruptcy as well as the bankruptcy of a former or current employer providing the underlying group insurance plan. When filing for personal bankruptcy you need to disclose in the petition the existence of COBRA insurance and the amount you pay each month in the form of a premium. Under a chapter 13 bankruptcy, where the debt is paid off over time COBRA insurance premiums are also included in the court created payment plan. Through a chapter 7 bankruptcy COBRA insurance remains in effect and premiums are made both during and after the bankruptcy case. A common misconception is that a bankruptcy case relieves you of your obligation to pay under a COBRA insurance plan. You remain responsible for the premiums and ensuring that they're paid in a timely manner. If a former or a current employer, providing group insurance benefits, files for bankruptcy and elects to cancel the group plan in its entirety, your COBRA insurance benefits will also simultaneously end. My name is Jeffrey Ingalls, I'm the president of Stratford Financial Group and Stratford Employer Services in Wayne, New Jersey. We can be found online at www.stratfordlink.com and you just watched: The Effect of Bankruptcy on COBRA Insurance. Thank you.