Amends title 11 of the United States Code to provide bankruptcy protections specifically for medically distressed debtors.
Defines “medical debt” as any debt incurred for medical diagnosis, treatment, or preventive services.
Establishes the definition of “medically distressed debtor” based on criteria including significant medical debt, lack of domestic support obligations, and employment changes due to medical issues or public health emergencies.
Allows medically distressed debtors to exempt up to $250,000 in value of certain properties, including residences and burial plots.
Waives certain administrative requirements for medically distressed debtors in Chapter 7 and Chapter 13 bankruptcy cases.
Modifies credit counseling requirements to include medically distressed debtors.
Adjusts the criteria for student loan undue hardship to consider medically distressed debtors.
Requires medically distressed debtors to file a statement of medical expenses to verify their status under this definition.
The amendments take effect upon enactment and apply only to cases filed after the enactment date.
