I 
111TH CONGRESS 
1ST SESSION 
H. R. 901 
To amend title 11 of the United States Code to provide protection for 
medical debt homeowners, to restore bankruptcy protections for individ-
uals experiencing economic distress as caregivers to ill or disabled family 
members, and to exempt from means testing debtors whose financial 
problems were caused by serious medical problems. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2009 
Ms. SHEA-PORTER introduced the following bill; which was 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 bank-
ruptcy protections for individuals experiencing economic 
distress as caregivers to ill or disabled family members, 
and to exempt from means testing debtors whose finan-
cial problems were caused by serious medical problems. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medical Bankruptcy 
Fairness Act’’. 
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SEC. 2. DEFINITIONS. 
Section 101 of title 11, the United States Code, is 
amended— 
(1) by inserting after paragraph (39A) the fol-
lowing: 
‘‘(39B) the term ‘medically distressed debtor’ 
means a debtor who, in any consecutive 12-month 
period during the 3 years before the date of the fil-
ing of the petition— 
‘‘(A) incurred or paid medical expenses for 
the debtor or a dependent of the debtor that 
were not paid by any third party payor and 
were in excess of the lesser of— 
‘‘(i) 25 percent of the debtor’s house-
hold income for such 12-month period; or 
‘‘(ii) $10,000. 
‘‘(B) was a member of a household in 
which 1 or more members (including the debt-
or) lost all or substantially all of the member’s 
employment or business income for 4 or more 
weeks during such 12-month period due to a 
medical problem of a member of the household 
or a dependent of the debtor; or 
‘‘(C) was a member of a household in 
which 1 or more members (including the debt-
or) lost all or substantially all of the member’s 
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alimony or support income for 4 or more weeks 
during such 12-month period due to a medical 
problem of a person obligated to pay alimony or 
support.’’. 
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 debt-
or, 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 co-
operative that owns property that the debtor or a de-
pendent of the debtor uses as a residence, or in a 
burial plot for the debtor or a dependent of the debt-
or; or 
‘‘(2) listed in subsection (b)(3), then if the ex-
emption provided under applicable law specifically 
for such property is for less than $250,000 in value, 
the debtor may elect in lieu of such exemption to ex-
empt the debtor’s aggregate interest, not to exceed 
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$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 amended by inserting immediately after 
‘‘522(q),’’ ‘‘522(r),’’. 
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)(A) 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 or 
an economically distressed caregiver. 
‘‘(B) In this paragraph, the term ‘economically 
distressed caregiver’ means a caregiver who, within 
3 years before the date of the filing of the petition— 
‘‘(i) experienced a downgrade in employ-
ment status that correlates to a reduction in 
wages, work hours, business income or results 
in unemployment, to care for a relative for not 
less than 30 days; or 
‘‘(ii) in any consecutive 12-month period, 
has incurred or paid medical expenses on behalf 
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