Medical Bankruptcy Fairness Act of 2026 provides bankruptcy protections for debtors with significant medical debt.
The Medical Bankruptcy Fairness Act of 2026 amends the U.S. Bankruptcy Code to offer special protections for debtors facing significant medical debt. It defines "medical debt" as any debt exceeding 10% of the debtor's adjusted gross income or $10,000, incurred for medical treatment or prevention of illness. The Act also defines "medically distressed debtor" as someone who has incurred such debt within the three years before filing for bankruptcy. It exempts these debtors from certain administrative requirements and allows them to exempt up to $250,000 in specified property.
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