Lets people struggling with medical debt get more help in bankruptcy and protect their credit.
This bill would create a new category in bankruptcy for people called "medically distressed debtors." These individuals would get special protections. For example, they could keep more of their home, avoid certain financial tests, and have their bankruptcy kept off credit reports. This aims to make it easier for people overwhelmed by medical bills to get a fresh start.
Today, medical debt is treated like other debt in bankruptcy, and all bankruptcies typically show up on credit reports. This bill would create a special category for "medically distressed debtors" who could protect up to $250,000 in home equity, skip certain financial tests, and have their bankruptcy removed from credit reports.
S 4972 · 119th Congress · July 14, 2026 · AI Summary by gemini-2.5-flash · 9/10
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