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Bankruptcy Relief for Individuals with Medical Debt

This act aims to simplify bankruptcy for individuals facing financial hardship due to high medical costs or job loss related to illness. It modifies rules for medical debt, allowing greater asset protection and an easier bankruptcy process for those most in need.
Key points
Introduces definitions for "medical debt" and "medically distressed debtor" to allow special treatment in bankruptcy proceedings.
Increases the amount of property (e.g., a home) that can be protected in bankruptcy for medically distressed debtors to $250,000.
Simplifies bankruptcy procedures for individuals with medical debt by waiving certain requirements like the means test or mandatory credit counseling.
Makes it easier to discharge student loan debt in bankruptcy if the debtor is medically distressed.
Requires debtors seeking medical debt relief to file a sworn statement that medical expenses were not incurred to intentionally meet the act's criteria.
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Expired
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Additional Information
Print number: 117_S_146
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2021-02-02
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Medical Bankruptcy Fairness Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_146.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-02-02.

What are the main provisions?

Key points include:

  • Introduces definitions for "medical debt" and "medically distressed debtor" to allow special treatment in bankruptcy proceedings.
  • Increases the amount of property (e.g., a home) that can be protected in bankruptcy for medically distressed debtors to $250,000.
  • Simplifies bankruptcy procedures for individuals with medical debt by waiving certain requirements like the means test or mandatory credit counseling.
  • Makes it easier to discharge student loan debt in bankruptcy if the debtor is medically distressed.
  • Requires debtors seeking medical debt relief to file a sworn statement that medical expenses were not incurred to intentionally meet the act's criteria.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Health Courts and Law Benefits