[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1624 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 1624
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,
injured, or disabled family members, and to exempt from means testing
debtors whose financial problems were caused by serious medical
problems, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2009
Mr. Whitehouse introduced the following bill; which was read twice and
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,
injured, or disabled family members, and to exempt from means testing
debtors whose financial problems were caused by serious medical
problems, and for other purposes.
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 of
2009''.
SEC. 2. DEFINITIONS.
(a) In General.--Section 101 of title 11, the United States Code,
is amended--
(1) by inserting after paragraph (39A) the following:
``(39B) The term `medical debt' means any debt incurred
directly or indirectly as a result of the diagnosis, cure,
mitigation, treatment, or prevention of injury, deformity, or
disease, or for the purpose of affecting any structure or
function of the body.
``(39C) 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 debts for the debtor
or a dependent of the debtor, or a nondependent member
of the immediate family of the debtor (including any
parent, grandparent, sibling, child, grandchild, or
spouse of the debtor), that were not paid by any third
party payor and were in excess of the lesser of--
``(i) 10 percent of the debtor's adjusted
gross income (as such term is defined under
section 62 of the Internal Revenue Code of
1986); 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 domestic support
obligation income, taking into consideration any
disability insurance payments, for 4 or more weeks, due
to a medical problem of a person obligated to pay such
domestic support; or
``(C) experienced a downgrade in employment status
that correlates to a reduction in wages or work hours
or results in unemployment, to care for an ill,
injured, or disabled dependent of the debtor, or an
ill, injured, or disabled nondependent member of the
immediate family of the debtor (including any parent,
grandparent, sibling, child, grandchild, or spouse of
the debtor), for not less than 30 days.''.
(b) Conforming Amendments.--Sections 104(b)(1) and 104(b)(2) of
title 11, the United States Code, are each amended by inserting
``101(39C)(A)(ii),'' after ``101(19)(A)''.
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 property of the
kind described in paragraph (1) 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 each amended by inserting
``522(r),'' after ``522(q),''.
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) 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.''.
SEC. 5. CREDIT COUNSELING.
Section 109(h)(4) of title 11 United States Code, is amended by
inserting ``a medically distressed debtor or'' after ``with respect
to''.
SEC. 6. NONDISCHARGEABILITY OF CERTAIN ATTORNEYS FEES.
Section 523(a) of title 11, United States Code, is amended--
(1) in paragraph (18), by striking ``or'' at the end;
(2) in paragraph (19), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after paragraph (19) the following:
``(20) incurred by a debtor relating to attorneys fees
generated as result of the debtor's filing of a petition under
chapter 7.''.
SEC. 7. 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.
SEC. 8. ATTESTATION BY DEBTOR.
Any debtor who seeks relief as a medically distressed debtor in
accordance with the amendments made by this Act shall attest in writing
and under penalty of perjury that the medical expenses of the debtor
were genuine, and were not specifically incurred to bring the debtor
within the coverage of the medical bankruptcy provisions, as provided
in this Act and the amendments made by this Act.
<all>