Bill · H.R. 9670· House(119-HR-9670)
Medical Bankruptcy Fairness Act of 2026
- Introduced
- 7/14/2026
- Last activity
- 7/14/2026 — Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Steve Cohen
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Medical Bankruptcy Fairness Act of 2026 seeks to amend title 11 of the United States Code to provide bankruptcy protections for individuals deemed "medically distressed debtors." It defines medical debt as debt from diagnosis, cure, or prevention of disease or injury. A medically distressed debtor is someone who has incurred significant medical debt or experienced employment changes due to medical issues or emergencies. The bill provides new property exemptions for these debtors, including protections for residences or burial plots. It also modifies rules regarding Chapter 7 and Chapter 13 bankruptcy cases and student loan undue hardship. Finally, the act excludes these specific bankruptcies from consumer reports.
Yes· 3 of 8
Would households on low incomes be better off under this?+6
The bill provides significant bankruptcy exemptions and easier relief processes for those with high medical debt.
Does this make housing cost less?+6
The bill allows medically distressed debtors to exempt up to $250,000 in residence equity from bankruptcy.
Is this likely to lift people out of poverty?+5
The bill provides increased property exemptions and easier bankruptcy paths for those facing medical debt.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Property Protection: Medically distressed debtors may elect to exempt an aggregate interest of up to $250,000 in property such as a residence or a burial plot (Section 3).
-
Easier Bankruptcy Processes: The bill removes certain requirements for Chapter 7 bankruptcy cases for those qualifying as medically distressed debtors (Section 4).
-
Student Loan Relief: The act modifies rules regarding student loan undue hardship for debtors who are medically distressed (Section 6).
-
Credit Score Protection: Information related to the bankruptcy of a medically distressed debtor would be excluded from consumer reports (Section 8).
Potential Negative Impacts for People
- Reporting Requirements: Debtors seeking relief as a medically distressed debtor must file a statement of medical expenses under penalty of perjury to prove they did not incur the debt solely to meet the definition (Section 7).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+6Good For Middle Class Households+4Good For People With Disabilities+4Good For Seniors+4
- Social Issues And Justice
- Improves Affordable Housing+6Improves Poverty Reduction+5
- Education And Technology
- Improves Student Loan Relief+5
- Governance And Ideology
- Improves Privacy Rights+4
- 7/14/2026
- Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
André CarsonDemocrat · Indiana