Medical Bankruptcy Fairness Act of 2026

This bill changes federal bankruptcy law for people it defines as "medically distressed debtors." These are people who, in the 3 years before filing, had unpaid medical debt above the lesser of 10% of their income or $10,000, lost expected support payments, or lost work or income because of illness, caring for a sick family member, or a declared emergency. Such debtors could protect up to $250,000 in value in a home or burial plot, would be excused from the Chapter 7 means test and credit counseling, and could more easily discharge student loans. The bill also bars credit reports from including information about these bankruptcies and requires debtors to file a sworn statement of their medical expenses.

Full text and official record on Congress.gov

Sponsors

• Steve Cohen Democrat sponsor
• 1 cosponsors