[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 901 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 901

 To amend title 11 of the United States Code to provide protection for 
    medical debt homeowners, to restore bankruptcy protections for 
  individuals experiencing economic distress as caregivers to ill or 
disabled family members, and to exempt from means testing debtors whose 
      financial problems were caused by serious medical problems.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 2009

 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 protection for 
    medical debt homeowners, to restore bankruptcy protections for 
  individuals experiencing economic distress as caregivers to ill or 
disabled family members, and to exempt from means testing debtors whose 
      financial problems were caused by serious medical problems.

    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''.

SEC. 2. DEFINITIONS.

    Section 101 of title 11, the United States Code, is amended--
            (1) by inserting after paragraph (39A) the following:
            ``(39B) the term `medically distressed debtor' means a 
        debtor who, in any consecutive 12-month period during the 3 
        years before the date of the filing of the petition--
                    ``(A) incurred or paid medical expenses for the 
                debtor or a dependent of the debtor that were not paid 
                by any third party payor and were in excess of the 
                lesser of--
                            ``(i) 25 percent of the debtor's household 
                        income for such 12-month period; or
                            ``(ii) $10,000.
                    ``(B) was a member of a household in which 1 or 
                more members (including the debtor) lost all or 
                substantially all of the member's employment or 
                business income for 4 or more weeks during such 12-
                month period due to a medical problem of a member of 
                the household or a dependent of the debtor; or
                    ``(C) was a member of a household in which 1 or 
                more members (including the debtor) lost all or 
                substantially all of the member's alimony or support 
                income for 4 or more weeks during such 12-month period 
                due to a medical problem of a person obligated to pay 
                alimony or support.''.

SEC. 3. EXEMPTIONS.

    (a) Exempt Property.--Section 522 of title 11, the United States 
Code, is amended by adding at the end the following:
    ``(r) For a debtor who is a medically distressed debtor, if the 
debtor elects to exempt property--
            ``(1) listed in subsection (b)(2), then in lieu of the 
        exemption provided under subsection (d)(1), the debtor may 
        elect to exempt the debtor's aggregate interest, not to exceed 
        $250,000 in value, in real property or personal property that 
        the debtor or a dependent of the debtor uses as a residence, in 
        a cooperative that owns property that the debtor or a dependent 
        of the debtor uses as a residence, or in a burial plot for the 
        debtor or a dependent of the debtor; or
            ``(2) listed in subsection (b)(3), then if the exemption 
        provided under applicable law specifically for such property is 
        for less than $250,000 in value, the debtor may elect in lieu 
        of such exemption to exempt the debtor's aggregate interest, 
        not to exceed $250,000 in value, in any such real or personal 
        property, cooperative, or burial plot.''.
    (b) Conforming Amendments.--Sections 104(b)(1) and 104(b)(2) of 
title 11, the United States Code, are amended by inserting immediately 
after ``522(q),'' ``522(r),''.

SEC. 4. DISMISSAL OF A CASE OR CONVERSION TO A CASE UNDER CHAPTER 11 OR 
              13.

    Section 707(b) of title 11, the United States Code, is amended by 
adding at the end the following:
            ``(8)(A) No judge, United States trustee (or bankruptcy 
        administrator, if any), trustee, or other party in interest may 
        file a motion under paragraph (2) if the debtor is a medically 
        distressed debtor or an economically distressed caregiver.
            ``(B) In this paragraph, the term `economically distressed 
        caregiver' means a caregiver who, within 3 years before the 
        date of the filing of the petition--
                    ``(i) experienced a downgrade in employment status 
                that correlates to a reduction in wages, work hours, 
                business income or results in unemployment, to care for 
                a relative for not less than 30 days; or
                    ``(ii) in any consecutive 12-month period, has 
                incurred or paid medical expenses on behalf of a 
                relative that were not paid by any third party payor 
                and were in excess of the lesser of--
                            ``(I) 25 percent of the debtor's household 
                        income for such 12-month period; or
                            ``(II) $10,000.''.

SEC. 5. 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 
the 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 of the 
United States Code on or after the date of the enactment of this Act.
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