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Easier Bankruptcy and Home Protection for Debtors with High Medical Costs.

This Act creates a special bankruptcy path for individuals whose financial distress is primarily caused by high medical debt or related job loss. Citizens qualifying as "medically distressed debtors" will face fewer administrative hurdles, making it easier to file for bankruptcy and protect significant assets, including up to $250,000 in home equity. The goal is to provide a financial safety net against catastrophic healthcare expenses.
Key points
Waiver of the "means test" for medically distressed debtors, simplifying qualification for Chapter 7 liquidation bankruptcy.
Increased asset protection: ability to exempt up to $250,000 in value of the primary residence from creditors.
Easier path to potentially discharge (cancel) federal student loan debt during bankruptcy for this specific group.
Exemption from the mandatory pre-filing credit counseling requirement.
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Additional Information
Print number: 118_S_5399
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2024-11-21
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Medical Bankruptcy Fairness Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5399.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-11-21.

What are the main provisions?

Key points include:

  • Waiver of the "means test" for medically distressed debtors, simplifying qualification for Chapter 7 liquidation bankruptcy.
  • Increased asset protection: ability to exempt up to $250,000 in value of the primary residence from creditors.
  • Easier path to potentially discharge (cancel) federal student loan debt during bankruptcy for this specific group.
  • Exemption from the mandatory pre-filing credit counseling requirement.
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 2025-12-26.

CATEGORIES

Health Courts and Law Benefits