Medical Bankruptcy Fairness Act of 2026

This bill changes federal bankruptcy law for people it defines as "medically distressed debtors." These include debtors who, in the 3 years before filing, had unpaid medical debt above the lesser of 10% of their income or $10,000, or who lost wages or work because of illness, caring for a sick family member, or a declared emergency. Such debtors could protect up to $250,000 in home or burial plot value. They would be exempt from the Chapter 7 means test, the credit counseling requirement, and certain Chapter 13 income requirements. Their student loans would be dischargeable without proving undue hardship. Their bankruptcies would also be kept off credit reports, and they would have to file a sworn statement of their medical expenses.

Full text and official record on Congress.gov

Sponsors

• Sheldon Whitehouse Democrat sponsor
• 6 cosponsors