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February 16, 2008

"medically distressed debtor" H.R. 5138

A new bill was introduced in the House on Jan 28, 2008 called the "Medical Bankruptcy Fairness Act of 2008."  It adds a definition in Section 101 of the "medically distressed debtor" which is a person who has more than $10,000 of medical debt (not paid by insurance) in a 12 month period in the last 3 years or lives in a household with someone who was out of work for 4 weeks in 12 months. 

This poor soul can exempt his residence up to $250,000 even if he is using the state exemption scheme which allows less than that amount.  Also the means test under Section 707(b)(2) will not apply to this person. 

February 16, 2008 in Legislation | Permalink


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