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 debt incurred due to medical treatment or prevention of disease. A "medically distressed debtor" is one who has incurred substantial medical debt, experienced a reduction in income due to medical issues, or has a dependent with medical needs. The Act exempts up to $250,000 of certain property from creditors, including homes and burial plots.

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 debt incurred due to medical treatment or prevention of disease. A "medically distressed debtor" is one who has incurred substantial medical debt, experienced a reduction in income due to medical issues, or has a dependent with medical needs. The Act exempts up to $250,000 of certain property from creditors, including homes and burial plots.