Medical Bankruptcy Fairness Act of 2014 - Amends federal bankruptcy law to cite circumstances under which a medically distressed debtor may elect to exempt from the property of the estate in bankruptcy up to $250,000 of the debtor's aggregate interest in: (1) specified real or personal property that the debtor (or debtor's dependent) uses as a residence, (2) a cooperative that owns the property used as a residence by the debtor or a dependent of the debtor, or (3) a burial plot for the debtor or debtor's dependent.
Applies the same election to certain other property of a medically distressed debtor, including certain retirement funds held in a tax-exempt account.
Declares inapplicable to a medically distressed debtor: (1) certain presumptions that granting relief under Chapter 7 would constitute abuse of Chapter 7, and (2) mandatory court disapproval of a debtor's plan under chapter 13 upon objection by the trustee or the holder of an allowed unsecured claim.
Waives the credit counseling prerequisite for filing for debt relief in the case of a medically distressed debtor.
Permits a medically distressed debtor to discharge in bankruptcy debts for certain educational loans.
Requires a debtor who seeks relief as a medically distressed debtor to attest in writing, and under penalty of perjury, that debtor's medical expenses are genuine, and are not specifically incurred to bring the debtor within the meaning of "medically distressed debtor."
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4917 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4917
To amend title 11 of the United States Code to provide bankruptcy
protections for medically distressed debtors, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2014
Ms. Shea-Porter introduced the following bill; which was referred to
the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code to provide bankruptcy
protections for medically distressed debtors, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medical Bankruptcy Fairness Act of
2014''.
SEC. 2. DEFINITIONS.
(a) In General.--Section 101 of title 11, United States Code, is
amended--
(1) by inserting after paragraph (39A) the following:
``(39B) The term `medical debt' means any debt incurred
voluntarily or involuntarily--
``(A) as a result of the diagnosis, cure,
mitigation, or treatment of injury, deformity, or
disease of an individual; or
``(B) for services performed by a medical
professional in the prevention of disease or illness of
an individual.
``(39C) The term `medically distressed debtor' means--
``(A) a debtor who, during the 3 years before the
date of the filing of the petition--
``(i) incurred or paid aggregate medical
debts for the debtor, a dependent of the
debtor, or a nondependent parent, grandparent,
sibling, child, grandchild, or spouse of the
debtor that were not paid by any third-party
payor and were greater than the lesser of--
``(I) 10 percent of the debtor's
adjusted gross income (as such term is
defined in section 62 of the Internal
Revenue Code of 1986); or
``(II) $10,000;
``(ii) did not receive domestic support
obligations, or had a spouse or dependent who
did not receive domestic support obligations,
of at least $10,000 due to a medical issue of
the person obligated to pay that would cause
the obligor to meet the requirements under
clause (i) or (iii), if the obligor was a
debtor in a case under this title; or
``(iii) experienced a change in employment
status that resulted in a reduction in wages,
salaries, commissions, or work hours or
resulted in unemployment due to--
``(I) an injury, deformity, or
disease of the debtor; or
``(II) care for an injured,
deformed, or ill dependent or
nondependent parent, grandparent,
sibling, child, grandchild, or spouse
of the debtor; or
``(B) a debtor who is the spouse of a debtor
described in subparagraph (A).''.
(b) Conforming Amendments.--Section 104 of title 11, United States
Code, is amended--
(1) in subsection (a), by inserting ``101(39C)(A),'' after
``101(19)(A),''; and
(2) in subsection (b), by inserting ``101(39C)(A),'' after
``101(19)(A),''.
SEC. 3. EXEMPTIONS.
(a) Exempt Property.--Section 522 of title 11, United States Code,
is amended by adding at the end the following:
``(r)(1) If a medically distressed debtor exempts property listed
in subsection (b)(2), the debtor may, in lieu of the exemption provided
under subsection (d)(1), elect to exempt the debtor's aggregate
interest, not to exceed $250,000 in value, in property described in
paragraph (3) of this subsection.
``(2) If a medically distressed debtor exempts property listed in
subsection (b)(3) and the exemption provided under applicable law
specifically for the kind of property described in paragraph (3) is for
less than $250,000 in value, the debtor may elect to exempt the
debtor's aggregate interest, not to exceed $250,000 in value, in any
such property.
``(3) The property described in this paragraph is--
``(A) real property or personal property that the debtor or
a dependent of the debtor uses as a residence;
``(B) a cooperative that owns property that the debtor or a
dependent of the debtor uses as a residence; or
``(C) a burial plot for the debtor or a dependent of the
debtor.''.
(b) Conforming Amendments.--Section 104 of title 11, United States
Code, is amended--
(1) in subsection (a), by inserting ``522(r),'' after
``522(q),''; and
(2) in subsection (b), by inserting ``522(r),'' after
``522(q),''.
SEC. 4. WAIVER OF ADMINISTRATIVE REQUIREMENTS.
(a) Case Under Chapter 7.--Section 707(b) of title 11, United
States Code, is amended by adding at the end the following:
``(8) Paragraph (2) does not apply in any case in which the
debtor is a medically distressed debtor.''.
(b) Case Under Chapter 13.--Section 1325(b)(1) of title 11, United
States Code, is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) the debtor is a medically distressed
debtor.''.
SEC. 5. CREDIT COUNSELING.
Section 109(h)(4) of title 11, United States Code, is amended by
inserting ``a medically distressed debtor or'' after ``apply with
respect to''.
SEC. 6. STUDENT LOAN UNDUE HARDSHIP.
Section 523(a)(8) of title 11, United States Code, is amended by
inserting ``the debtor is a medically distressed debtor or'' before
``excepting''.
SEC. 7. ATTESTATION BY DEBTOR.
Section 521 of title 11, United States Code, is amended by adding
at the end the following:
``(k) If the debtor seeks relief as a medically distressed debtor,
the debtor shall file a statement of medical expenses relevant to the
determination of whether the debtor is a medically distressed debtor,
which statement 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 debtor.''.
SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by this Act shall take effect on the date of
enactment of this Act.
(b) Application of Amendments.--The amendments made by this Act
shall apply only with respect to cases commenced under title 11, United
States Code, on or after the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.
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