My mother is in a NYState nursing home, on Medicaid and has incurred a $7000 debt during her first three months at the home because of the way that the business office in the nursing home handled the health insurance papers! My question is this: Can my mother file for bankruptcy to get this debt eliminated? The nursing home is ALSO in bankruptcy and wants their money. I know that I will have a lawsuit against the nursing home because of the negligence in the way they handled the health insurance papers, but I would like to know the answer to the bankruptcy question first!!!