New rules would help people with major medical debt get bankruptcy relief and protect their credit.
This bill would create a new category for people struggling with medical bills, called "medically distressed debtors." These individuals would get special bankruptcy protections, including an easier path to discharge student loans and preventing their bankruptcy from appearing on credit reports. This aims to ease the financial burden for those overwhelmed by healthcare costs.
Today, individuals filing for bankruptcy face strict income tests, must attend credit counseling, and their bankruptcy typically appears on credit reports for years. Student loans are also very difficult to discharge. After this bill, a new category of "medically distressed debtors" would be created, allowing them to bypass certain income tests and credit counseling, discharge student loans more easily, and have their bankruptcy excluded from consumer credit reports.
HR 9670 · 119th Congress · July 14, 2026 · AI Summary by gemini-2.5-flash · 8/10
Sign in to see your representatives' phone numbers