Universal Guaranty Life Insurance v. Health Receivables Management, Inc. (In Re Health Management Ltd. Partnership)

OPINION

LARRY LESSEN, Bankruptcy Judge.

The issue before the Court is whether a collection company may continue to collect the debtor’s accounts receivable pursuant to a pre-petition contract which the debtor rejected the day after filing its bankruptcy petition.

The parties have stipulated to the material facts: The Debtor, Health Management Limited Partnership, operated a hospital facility in Springfield, Illinois known as “Doctors Hospital”. The Plaintiff, Universal Guaranty Life Insurance Company, holds the first priority security interest in the Debtor’s accounts receivable. The Defendant,…