Steve Cohen (D-TN)
Medical Bankruptcy Fairness Act of 2026
A Democratic bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Medical Bankruptcy Fairness Act of 2026 seeks to amend title 11 of the United States Code to provide bankruptcy protections for individuals deemed "medically distressed debtors." It defines medical debt as debt from diagnosis, cure, or prevention of disease or injury. A medically distressed debtor is someone who has incurred significant medical debt or experienced employment changes due to medical issues or emergencies. The bill provides new property exemptions for these debtors, including protections for residences or burial plots. It also modifies rules regarding Chapter 7 and Chapter 13 bankruptcy cases and student loan undue hardship. Finally, the act excludes these specific bankruptcies from consumer reports.
Yes· 3 of 8
- Scored +6
Would households on low incomes be better off under this?
The bill provides significant bankruptcy exemptions and easier relief processes for those with high medical debt.
- Scored +6
Does this make housing cost less?
The bill allows medically distressed debtors to exempt up to $250,000 in residence equity from bankruptcy.
- Scored +5
Is this likely to lift people out of poverty?
The bill provides increased property exemptions and easier bankruptcy paths for those facing medical debt.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Property Protection: Medically distressed debtors may elect to exempt an aggregate interest of up to $250,000 in property such as a residence or a burial plot (Section 3).
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Easier Bankruptcy Processes: The bill removes certain requirements for Chapter 7 bankruptcy cases for those qualifying as medically distressed debtors (Section 4).
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Student Loan Relief: The act modifies rules regarding student loan undue hardship for debtors who are medically distressed (Section 6).
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Credit Score Protection: Information related to the bankruptcy of a medically distressed debtor would be excluded from consumer reports (Section 8).
Potential Negative Impacts for People
- Reporting Requirements: Debtors seeking relief as a medically distressed debtor must file a statement of medical expenses under penalty of perjury to prove they did not incur the debt solely to meet the definition (Section 7).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill provides significant bankruptcy exemptions and easier relief processes for those with high medical debt. Would middle-income households be better off under this? — The bill offers protections for residence equity for individuals facing medical financial distress. Would people with disabilities be better off under this? — The bill provides debt relief and property protections for individuals facing medical issues that impact employment. Would people over 65 be better off under this? — The bill provides financial protections for those who may face medical debt due to illness or caregiving.
- Social Issues And Justice
- Does this make housing cost less? — The bill allows medically distressed debtors to exempt up to $250,000 in residence equity from bankruptcy. Is this likely to lift people out of poverty? — The bill provides increased property exemptions and easier bankruptcy paths for those facing medical debt.
- Education And Technology
- Does this reduce what student borrowers owe or repay? — The bill expands the criteria for proving undue hardship in student loan bankruptcy cases for medically distressed debtors.
- Governance And Ideology
- Does this protect people from being watched or searched? — The bill excludes information related to specific medical bankruptcies from consumer credit reports.
- 7/14/2026
- Referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
André CarsonDemocrat · Indiana