S. 1624, The Medical Bankruptcy Fairness Act of 2009

• This item is from the 111th Congress (2009-2010) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.

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S. 1624 would amend title 11 of the United States Code, to provide protection for medical debt homeowners, to restore bankruptcy protections for individuals experiencing economic distress as caregivers to ill, injured, or disabled family members, and to exempt from means testing debtors whose financial problems were caused by serious medical problems.

Detailed Summary

Medical Bankruptcy Fairness Act of 2009 - Amends federal bankruptcy law to cite circumstances under which a medically distressed debtor may elect to exempt from the property of the estate in bankruptcy up to $250,000 of the debtor's aggregate interest in specified real or personal property that the debtor (or debtor's dependent) uses as a residence, in a cooperative, or in a burial plot for the debtor or a dependent.

Revises requirements for dismissal or conversion of a Chapter 7 case to prohibit the court or specified parties in interest from filing a motion to dismiss or convert to Chapter 11 or 13 if the debtor is a medically distressed debtor.

Waives the credit counseling prerequisite for filing for relief from debt in the case of a medically distressed debtor.

Denies a discharge in bankruptcy from any debt incurred that relates to attorneys' fees generated as a result of the debtor's filing of a Chapter 7 petition.

Requires a debtor who seeks relief as a medically distressed debtor to attest in writing, and under penalty of perjury, that the medical expenses of the debtor are genuine, and not specifically incurred to bring the debtor within the coverage of the medical bankruptcy provisions of this Act.

Status of the Legislation

Latest Major Action: 12/17/2009: Senate committee/subcommittee actions. Status: Committee on the Judiciary. Date of scheduled consideration. SD-226. 10:00 a.m.

Points in Favor

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Points Against

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