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.

Sponsor: Sen. Sheldon Whitehouse [D-RI]
(no cosponsors)



Text: The text of this legislation is not yet available on GovTrack. It may not have been made available by the Government Printing Office yet.
Status: Introduced Aug 6, 2009 Referred to Committee View Committee Assignments

It'll never make it out of committee.

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I'm all for consumer's rights, but you simply can't fix stupid. - Some Guy (5/4/09)

Actually, every one of my posts on this board have been uncalled for. - Spy Boy (8/2/07)

TX - I think that is a dangeros assumption to make, especially when you cosider the whole healthc care debate right now. I'm sure that ANYTHING that could help to "sweeten the pot" is on the table. This would have a very popular appeal with consumers. And from there, it's down the slippery slope.....

Today anything goes. Maybe one day they will make the doctors pay their patients for the services they were willing to accept.

Well next they will just say eat the expence to the creditors
and then debtors can really start racking up debts. Hell while
there at it why not just give anyone who asks ssi and medicare.
Nah better yet lets get rid of the entire monetary system
altogether. Let debtors work it out on their own with the
creditor... better than that lets just go ahead and pull our
bottom lips over our heads and swallow

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~ i love being a 3rd party bill collector ~ because i never liked turnips!!!!!

Updated:
Latest actions: Oct 19th Committee on the Judiciary. Hearings held

Bill text now available...

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.

You can track S.1624 here...

http://www.opencongress.org/bill/111-s1624/text

Edited: 10/23/2009 at 10:44 AM by Gina McNaughton

WOW!!! The rich can once against go Chapter 7 . . . you just have to get a $10,001.00 nose job within 3 years prior to filing . . . again, WOW!!!




Debtors' attys are gonna love that one!

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I'm all for consumer's rights, but you simply can't fix stupid. - Some Guy (5/4/09)

Actually, every one of my posts on this board have been uncalled for. - Spy Boy (8/2/07)

Updated:
Latest actions: Oct 29th Committee on the Judiciary. Date of scheduled consideration. SD-226. 10:00 a.m

Updated:
Latest actions: Oct 29th The Senate Judiciary Committee Held Over.

In addition, 4 Co-Sponsors now listed:

Sen. Russell Feingold [D, WI]
Sen. Al Franken [D, MN]
Sen. John Kerry [D, MA]
Sen. Bernard Sanders [I, VT]

Well, with heavy hitters like that co-sponsoring the bill, maybe it will make it out of committee after all.

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I'm all for consumer's rights, but you simply can't fix stupid. - Some Guy (5/4/09)

Actually, every one of my posts on this board have been uncalled for. - Spy Boy (8/2/07)

Moved again: Nov 5th Committee on the Judiciary.
Date of scheduled consideration. SD-226. 10:00 a.m.

Update: Nov 5 Held Over

Von Mises once said that for every 1 action the government takes with good intentions, 2 bad actions will come out if it as a result. I wish he were alive today.

The phrase "unintended consequences" comes to mind.

You might want to take the time to actually read the bill before you start criticizing it.

"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."

Update:

Senate Judiciary Committee
Dirksen Senate Office Building Room 226
November 19, 2009 at 10:00 a.m.

Well, since your grasp of what goes on in bankruptcy courts is clearly so much better than my own, why don't you go ahead and share with us the number of bankruptcy cases in which you have represented either a creditor or a debtor.

That way, we can fully understand the degree of your intellectual superiority . . . thanks!

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I'm all for consumer's rights, but you simply can't fix stupid. - Some Guy (5/4/09)

Actually, every one of my posts on this board have been uncalled for. - Spy Boy (8/2/07)

TX you cynic!

Are you saying that the Petitioners would "attest in writing and under penalty of perjury" to something untrue?

You should be ashamed and have more respect for your fellow mankind. They would never lie, embellish, fabricate, exagerate, hypothicate or otherwise misslead the court! Next thing you will want us to believe is that they hide assets too! NO WAY!

Oh you are so awful! ROFLMAO

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Also when I was drunk at the age of 17 I did sleep with a blow up doll. It was not a very good experience. - Special Handling Debtor 2/11/2009
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I demand you take my quote out of your signature line - Special Handling Debtor 2/12/2009

I prefer to consider myself that little dose of reality that some people apparently need so desperately.

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I'm all for consumer's rights, but you simply can't fix stupid. - Some Guy (5/4/09)

Actually, every one of my posts on this board have been uncalled for. - Spy Boy (8/2/07)

Update: Nov 19 Held Over