[Congressional Record Volume 163, Number 125 (Tuesday, July 25, 2017)]
[Senate]
[Pages S4199-S4200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 268. Mr. WHITEHOUSE submitted an amendment intended to be proposed
by him to the bill H.R. 1628, to provide for reconciliation pursuant to
title II of the concurrent resolution on the budget for fiscal year
2017; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. MEDICAL BANKRUPTCY FAIRNESS.
(a) Definitions.--
(1) In general.--Section 101 of title 11, United States
Code, is amended--
(A) 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).''.
(2) Conforming amendments.--Section 104 of title 11, United
States Code, is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by inserting ``101(39C)(A),'' after ``101(19)(A),''; and
(B) in subsection (b), by inserting ``101(39C)(A),'' after
``101(19)(A),''.
(b) Exemptions.--
(1) 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
[[Page S4200]]
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.''.
(2) Conforming amendments.--Section 104 of title 11, United
States Code, is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by inserting ``522(r),'' after ``522(q),''; and
(B) in subsection (b), by inserting ``522(r),'' after
``522(q),''.
(c) Waiver of Administrative Requirements.--
(1) 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.''.
(2) Case under chapter 13.--Section 1325(b)(1) of title 11,
United States Code, is amended--
(A) in subparagraph (A), by striking ``or'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(C) the debtor is a medically distressed debtor.''.
(d) 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''.
(e) 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''.
(f) 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.''.
(g) Effective Date; Application of Amendments.--
(1) Effective date.--Except as provided in paragraph (2),
this section and the amendments made by this section shall
take effect on the date of enactment of this Act.
(2) Application of amendments.--The amendments made by this
section shall apply only with respect to cases commenced
under title 11, United States Code, on or after the date of
enactment of this Act.
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