CRCS - I/P Final Review Questions
[Sections 5]
The amount of time in which a claim must be collected before it is deemed paid or satisfied; no legal
proceedings can be initiated after this expires
Statute of Limitations
An individual who has no means of paying for medical services or treatments and it is not eligible for
benefits under Medicaid or any other public assistance program
Indigent
An uncollectible account resulting from the extension of credit; examples include patients who default
from payment arrangements, skip, file bankruptcy without assets, or have insolvent estates, and
guarantors who refuse to pay.
Bad Debt
Service provided that is never expected to result in cash flow; results from a provider's policy to
provide healthcare services free of charge to individuals who meet certain financial criteria
Charity Care
A liability for an injury or wrongdoing by one person to another resulting from a breach of legal duty
Tort Liability
A legally verified claim against a debtor validated by the court; a legal right to collect a debt that can
be used to obtain a lien
Judgment
A record claim against real or personal property generally arising out of a debt; if the property is sold
by the debtor, the creditor (the provider) must be paid out of the proceeds of that sale
Lien
The type of bankruptcy that is frequently referred to as a "reorganization" bankruptcy
Chapter 11
The type of bankruptcy that accounts for about 70% of all bankruptcy claims
Chapter 7
The type of bankruptcy that is for farmers
Chapter 12
, The type of bankruptcy that is designed for individuals with regular income who desire to pay their
debts, but currently are unable to do so
Chapter 13
The type of bankruptcy that grants 3 months to draft an initial repayment plan
Chapter 11
The type of bankruptcy that can be forced if there are 12 or more creditors, three of which have
claims in excess of $5,000 each
Involuntary
The type of bankruptcy that provides that only an entity with "regular annual income" may file a
petition for relief
Chapter 12
The type of bankruptcy that permits debtors to repay creditors, in full or in part, in installments over a
five-year period for a cause
Chapter 13
The type of bankruptcy that requires that the debtor's assets are auctioned to satisfy creditor claims
Chapter 7
The type of bankruptcy that can be forced if there are fewer that 12 creditors, and one is owed at
least $10,775
Involuntary
The type of bankruptcy that permits debtors to repay creditors, in full or in part, in installments over a
three-year period
Chapter 13
Which of the following is not a true statement about a discharged bankruptcy ?
a. It releases the guarantor/ patient from financial responsibility of any and all account balances listed
on the bankruptcy petition
b. The account balance is to be written off to the appropriate transaction code
c. It covers any patient accounts that occur within 6 months following the notification
d. It is usually entered within 6 months when a Chapter 7 bankruptcy is deemed to have no assets
c. It covers any patient accounts that occur within 6 months following the notification
[Sections 5]
The amount of time in which a claim must be collected before it is deemed paid or satisfied; no legal
proceedings can be initiated after this expires
Statute of Limitations
An individual who has no means of paying for medical services or treatments and it is not eligible for
benefits under Medicaid or any other public assistance program
Indigent
An uncollectible account resulting from the extension of credit; examples include patients who default
from payment arrangements, skip, file bankruptcy without assets, or have insolvent estates, and
guarantors who refuse to pay.
Bad Debt
Service provided that is never expected to result in cash flow; results from a provider's policy to
provide healthcare services free of charge to individuals who meet certain financial criteria
Charity Care
A liability for an injury or wrongdoing by one person to another resulting from a breach of legal duty
Tort Liability
A legally verified claim against a debtor validated by the court; a legal right to collect a debt that can
be used to obtain a lien
Judgment
A record claim against real or personal property generally arising out of a debt; if the property is sold
by the debtor, the creditor (the provider) must be paid out of the proceeds of that sale
Lien
The type of bankruptcy that is frequently referred to as a "reorganization" bankruptcy
Chapter 11
The type of bankruptcy that accounts for about 70% of all bankruptcy claims
Chapter 7
The type of bankruptcy that is for farmers
Chapter 12
, The type of bankruptcy that is designed for individuals with regular income who desire to pay their
debts, but currently are unable to do so
Chapter 13
The type of bankruptcy that grants 3 months to draft an initial repayment plan
Chapter 11
The type of bankruptcy that can be forced if there are 12 or more creditors, three of which have
claims in excess of $5,000 each
Involuntary
The type of bankruptcy that provides that only an entity with "regular annual income" may file a
petition for relief
Chapter 12
The type of bankruptcy that permits debtors to repay creditors, in full or in part, in installments over a
five-year period for a cause
Chapter 13
The type of bankruptcy that requires that the debtor's assets are auctioned to satisfy creditor claims
Chapter 7
The type of bankruptcy that can be forced if there are fewer that 12 creditors, and one is owed at
least $10,775
Involuntary
The type of bankruptcy that permits debtors to repay creditors, in full or in part, in installments over a
three-year period
Chapter 13
Which of the following is not a true statement about a discharged bankruptcy ?
a. It releases the guarantor/ patient from financial responsibility of any and all account balances listed
on the bankruptcy petition
b. The account balance is to be written off to the appropriate transaction code
c. It covers any patient accounts that occur within 6 months following the notification
d. It is usually entered within 6 months when a Chapter 7 bankruptcy is deemed to have no assets
c. It covers any patient accounts that occur within 6 months following the notification
