Medical Bankruptcy Fairness Act of 2026
Sponsored By: Representative Cohen, Steve [D-TN-9]
Introduced
Summary
Protects people with large medical bills by creating a new "medically distressed" category and targeted bankruptcy relief. The bill would define medical debt and who counts as a medically distressed debtor and then give those debtors special exemptions and procedural waivers.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Bankruptcy relief for big medical bills
If enacted, the bill would create a "medically distressed debtor" status for bankruptcy. You would qualify if, in the 3 years before filing, your unpaid medical bills exceed the lesser of 10% of your adjusted gross income or $10,000, or you have $10,000 or more in unmet medical-related domestic support, or you lost or reduced work for medical reasons. A qualifying filer could elect to protect up to $250,000 in value in residence-related property or a burial plot when claiming exemptions. The bill would also exclude medically distressed debtors from the Chapter 7 means-test paragraph, add related language in Chapter 13 and other bankruptcy rules, and require a sworn statement of medical expenses when claiming this status.
Prevent medical bankruptcies on credit reports
If enacted, the bill would bar consumer reporting agencies from including bankruptcies of medically distressed debtors in credit reports. The bill would define "medically distressed debtor" by cross-reference to the new bankruptcy definition. This would keep those bankruptcies out of the credit files lenders see.
New rules apply only to future filings
If enacted, the bill's bankruptcy changes would take effect on the date of enactment. The amendments would apply only to bankruptcy cases filed on or after that date. Cases filed before enactment would not be covered by the new rules.
Sponsors & CoSponsors
Sponsor
Cohen, Steve [D-TN-9]
TN • D
Cosponsors
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 7/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov