Certified Revenue Cycle Representative (CRCR) Practice Exam 2025 - Free CRCR Practice Questions and Study Guide

When a patient declares straight bankruptcy, the provider often takes the necessary step of writing off the account, which reflects the recognition that the debt is uncollectible due to the bankruptcy ruling. This action allows the provider to appropriately adjust their financial records by removing the outstanding amount from accounts receivable. It aligns with the principles of accounting as well as compliance with bankruptcy laws, which typically discharge debts, preventing the provider from pursuing collections on those balances.

In contrast, sending the account to collections could violate the bankruptcy protections that prevent creditors from attempting to collect on debts once bankruptcy is declared. Negotiating a reduced payment plan is not feasible, as bankruptcy eliminates the obligation to pay that debt, and requesting a payment from the spouse would not typically hold merit, as bankruptcy usually discharges individual debts unless the spouse is also legally responsible for them. Thus, writing off the account to the contractual adjustment account is the most appropriate and compliant action.