119th (2025–2027)
H.R. 9670
The Medical Bankruptcy Fairness Act of 2026 would amend federal bankruptcy law to provide special protections for people whose debt is primarily caused by medical expenses or medical-related job loss. The bill defines a "medically distressed debtor" as someone who incurred more than 10 percent of their annual income in unpaid medical debt within the past three years, or who lost income due to their own illness or caring for a sick family member. Medically distressed debtors would receive several benefits, including higher property exemptions up to $250,000 for their homes, waiver of certain bankruptcy filing requirements, exemption from mandatory credit counseling, and easier access to student loan forgiveness. Additionally, their bankruptcy records would be excluded from consumer credit reports, helping protect their future creditworthiness. The bill would take effect upon enactment and apply only to bankruptcy cases filed after that date.