(7th Cir. Aug. 28, 2015)
The Seventh Circuit reverses the district court and affirms the bankruptcy court, finding that the hospital assessment fee of the state was a pre-petition claim and thus subject to the automatic stay. The fee was determined by analyzing conduct of the debtor occurring prepetition. The court discusses and applies the “conduct test” to determine when the claim accrued and ultimately determines it accrued prepetition. Thus, the state was not permitted to withhold Medicaid reimbursements to offset the claim postpetition. Opinion below.
Author: Matt Lindblom