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.
Status:
Expired
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