Bill · S. 4972· Senate(119-S-4972)
Medical Bankruptcy Fairness Act of 2026
- Introduced
- 7/14/2026
- Last activity
- 7/14/2026 — Read twice and referred to the Committee on the Judiciary.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 6 - 0
- Introduced
- In Committee
What this bill would do
This bill is known as the Medical Bankruptcy Fairness Act of 2026. It amends title 11 of the United States Code to provide bankruptcy protections specifically for medically distressed debtors. The legislation defines what constitutes medical debt and a medically distressed debtor based on medical expenses, missed support payments due to medical issues, or employment changes due to medical reasons or public health emergencies. It allows these debtors to exempt up to $250,000 in value for a residence, cooperative, or burial plot. Additionally, the bill waives certain administrative requirements, waives credit counseling requirements, addresses student loan undue hardship, requires a debtor attestation, and excludes medically distressed debtor bankruptcies from consumer reports.
Yes· 3 of 29
Would households on low incomes be better off under this?+9
Provides critical protections and easier bankruptcy paths for those with limited income facing high medical costs.
Would people with disabilities be better off under this?+9
Directly benefits those with chronic illnesses or disabilities who are most prone to medical debt.
Would people over 65 be better off under this?+7
Seniors are more likely to incur high medical debts and benefit from residence and burial plot exemptions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Exemption for Residence or Burial Plot: Under Section 3, a medically distressed debtor may elect to exempt up to $250,000 in value in real or personal property used as a residence, a cooperative used as a residence, or a burial plot. This protects a person's home and final resting place from being entirely seized during bankruptcy.
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Waiver of Administrative Requirements: Under Section 4, certain administrative requirements under Chapter 7 and Chapter 13 do not apply if the debtor is a medically distressed debtor. This removes specific hurdles for individuals navigating the bankruptcy process due to medical hardships.
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Credit Counseling Waiver: Under Section 5, the requirement for credit counseling is waived for a medically distressed debtor. This eases the procedural burden on individuals dealing with medical crises.
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Student Loan Undue Hardship: Under Section 6, student loan debt exceptions do not apply if the debtor is a medically distressed debtor. This provision helps people struggling with medical debt find relief regarding their student loans during bankruptcy.
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Exclusion from Consumer Reports: Under Section 8, any information related to the bankruptcy of a medically distressed debtor is excluded from consumer reports. This protects an individual's credit report from being damaged by a medical bankruptcy filing.
Potential Negative Impacts for People
- Attestation Requirement and Penalties: Under Section 7, a debtor seeking relief as a medically distressed debtor must file a statement of medical expenses declaring under penalty of perjury that the medical expenses were not incurred for the purpose of qualifying as a medically distressed debtor. This adds a strict reporting requirement and potential legal risk for individuals filing for bankruptcy.
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+9Good For People With Disabilities+9Good For Middle Class Households+7Good For Retirees+7Good For Seniors+7Good For Students+6Good For Middle Aged+5Good For Veterans+4Good For Young Adults+4Good For African Americans+3Good For Hispanic Americans+3Good For Men+3Good For Native Americans+3Good For Women+3Good For Asian Americans+2Good For Children+2Good For L G B T Q Community+2Good For Rural Residents+2Good For Urban Residents+2Good For White Americans+2
- Social Issues And Justice
- Improves Affordable Housing+7Improves Disability Rights+6Improves Poverty Reduction+6Reduces Homelessness+5
- Economy And Finance
- Improves Consumer Protection+5Improves Economic Growth+2
- Education And Technology
- Improves Student Loan Relief+7
- Governance And Ideology
- Improves Privacy Rights+5
- Healthcare
- Improves Healthcare Access+2
- 9/24/2026
- 1 Cosponsor added.
- 7/14/2026
- Read twice and referred to the Committee on the Judiciary.
- 5 Cosponsors added.
- Introduced in Senate
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.
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Ben LujánDemocrat · New Mexico
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts