,,ii #aafth ,,congress #b;d ,session ,s4 #dcje ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bc1 #bjbj,mr4 ,whitehouse 7for himself1 ,mr4 ,durbin1 ,mr4 ,brown1 ,ms4 ,baldwin1 and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #aa1 ,united ,states ,code1 to provide bankruptcy protections for medically distressed debtors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,medical ,bankruptcy ,fairness ,act of #bjbj4 #b4 ,definitions 7a7 ,in general ,section #aja of title #aa1 ,united ,states ,code1 is amended-- 7#a7 by inserting after paragraph 7#ci;,a7 the following3 7#ci;,b7 ,the term medical debt means any debt incurred voluntarily or involuntarily-- 7,a7 as a result of the diagnosis1 cure1 mitigation1 or treatment of injury1 deformity1 or disease of an individual2 or 7,b7 for services performed by a medical professional for the prevention of disease or illness in an individual4 7#ci;,c7 ,the term medically distressed debtor means-- 7,a7 a debtor who1 during the #c-year period preceding the date of the filing of the petition-- 7i7 incurred or paid aggregate medical debt for the debtor1 a dependent of the debtor1 or a nondependent parent1 grandparent1 sibling1 child1 grandchild1 or spouse of the debtor that were not paid by any third-party payor and were greater than the lesser of-- 7,i7 #aj percent of the adjusted gross income 7as such term is defined in section #fb of the ,internal ,revenue ,code of #aihf7 of the debtor2 or 7,,ii7 #aj1jjj2 7ii7 did not receive domestic support obligations1 or had a spouse or dependent who did not receive domestic support obligations1 of at least #aj1jjj due to a medical issue of the individual obligated to pay that would cause the obligor to meet the requirements under clause 7i7 or 7iii71 if the obligor was a debtor in a case under this title2 or 7iii7 experienced a change in employment status that resulted in a reduction in wages1 salaries1 commissions1 or work hours or resulted in unemployment due to-- 7,i7 an injury1 deformity1 or disease of the debtor2 7,,ii7 care for an injured1 deformed1 or ill dependent or nondependent parent1 grandparent1 sibling1 child1 grandchild1 or spouse of the debtor2 or 7,,iii7 the national emergency declared by the ,president under the ,national ,emergencies ,act 7#ej ,u4,s4,c4 #afja et seq47 with respect to the coronavirus disease #bjai 7,,covid-#ai7 or another emergency declared by a ,federal1 ,state1 or local official relating to a public health crisis2 or 7,b7 a debtor who is the spouse of a debtor described in subparagraph 7,a74 4 7b7 ,conforming amendments ,section #ajd of title #aa1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a71 in the matter preceding paragraph 7#a71 by inserting #aja7ci;,c77,a71 after #aja7ai;,a712 and 7#b7 in subsection 7b71 by inserting #aja7ci;,c77,a71 after #aja7ai;,a714 #c4 ,exemptions 7a7 ,exempt property ,section #ebb of title #aa1 ,united ,states ,code1 is amended by adding at the end the following3 7r7 7#a7 ,if a medically distressed debtor exempts property listed in subsection 7b77#b71 the debtor may1 in lieu of the exemption provided under subsection 7d77#a71 elect to exempt the aggregate interest of the debtor1 not to exceed #bej1jjj in value1 in property described in paragraph 7#c74 7#b7 ,if a medically distressed debtor exempts property listed in subsection 7b77#c7 and the exemption provided under applicable law for the kind of property described in paragraph 7#c7 is for less than #bej1jjj in value1 the debtor may elect to exempt the aggregate interest of the debtor1 not to exceed #bej1jjj in value1 in any such property4 7#c7 ,the property described in this paragraph is-- 7,a7 real property or personal property that the debtor or a dependent of the debtor uses as a residence2 7,b7 a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence2 or 7,c7 a burial plot for the debtor or a dependent of the debtor4 4 7b7 ,conforming amendments ,section #ajd of title #aa1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a71 in the matter preceding paragraph 7#a71 by inserting #ebb7r71 after #ebb7q712 and 7#b7 in subsection 7b71 by inserting #ebb7r71 after #ebb7q714 #d4 ,waiver of administrative requirements 7a7 ,case under chapter #g ,section #gjg7;b7 of title #aa1 ,united ,states ,code1 is amended by adding at the end the following3 7#h7 ,paragraph 7#b7 does not apply in any case in which the debtor is a medically distressed debtor4 4 7b7 ,case under chapter #ac ,section #acbe7;b77#a7 of title #aa1 ,united ,states ,code1 is amended-- 7#a7 in subparagraph 7,a71 by striking or at the end2 7#b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following3 7,c7 the debtor is a medically distressed debtor4 4 #e4 ,credit counseling ,section #aji7;h77#d7 of title #aa1 ,united ,states ,code1 is amended by inserting a medically distressed debtor or after apply with respect to4 #f4 ,student loan undue hardship ,section #ebc7;a77#h7 of title #aa1 ,united ,states ,code1 is amended by inserting the debtor is a medically distressed debtor1 or before excepting4 #g4 ,attestation by debtor ,section #eba of title #aa1 ,united ,states ,code1 is amended by adding at the end the following3 7k7 ,if the debtor seeks relief as a medically distressed debtor1 the debtor shall file a statement of medical expenses relevant to the determination of whether the debtor is a medically distressed debtor1 which shall declare under penalty of perjury that such medical expenses were not incurred for the purpose of bringing the debtor within the meaning of the term medically distressed debtor4 4 #h4 ,effective date2 application of amendments 7a7 ,effective date ,except as provided in subsection 7b71 this ,act and the amendments made by this ,act shall take effect on the date of enactment of this ,act4 7b7 ,application of amendments ,the amendments made by this ,act shall apply only with respect to cases commenced under title #aa1 ,united ,states ,code1 on or after the date of enactment of this ,act4