What happens to health insurance after filing for Chapter 11 bankruptcy?
What happens to health insurance after filing for Chapter 11 bankruptcy? Tim Cella used to work at several law firms Health insurance should stay in effect for you personally if you file a chapter 11 bankruptcy until you stop paying the premium. The same would be the case if your business filed a chapter 11 bankruptcy. Typically, a Chapter 11 is filed by companies rather than individuals as it is a form of bankruptcy protection that gives a company time to reorganize its debts and assets. Most importantly for this discussion, there are two types of health insurance that can help protect you from being dropped from your coverage: continuation coverage and COBRA. Continuation coverage kicks in after an employer-provided health plan ends. It usually lasts for 18 months but it can extend even longer if the company goes through a restructuring period during that time. COBRA kicks in after regular continuation coverage ends; it means that you can continue with your employer's health pl...