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.
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