I 
113TH CONGRESS 
2D SESSION 
H. R. 4917 
To amend title 11 of the United States Code to provide bankruptcy 
protections for medically distressed debtors, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 19, 2014 
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 
bankruptcy protections for medically distressed debtors, 
and for other purposes. 
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 of 2014’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—Section 101 of title 11, United 
States Code, is amended— 
(1) by inserting after paragraph (39A) the fol-
lowing: 
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‘‘(39B) The term ‘medical debt’ means any 
debt incurred voluntarily or involuntarily— 
‘‘(A) as a result of the diagnosis, cure, 
mitigation, or treatment of injury, deformity, or 
disease of an individual; or 
‘‘(B) for services performed by a medical 
professional in the prevention of disease or ill-
ness of an individual. 
‘‘(39C) The term ‘medically distressed debtor’ 
means— 
‘‘(A) a debtor who, during the 3 years be-
fore the date of the filing of the petition— 
‘‘(i) incurred or paid aggregate med-
ical debts for the debtor, a dependent of 
the debtor, or a nondependent parent, 
grandparent, sibling, child, grandchild, or 
spouse of the debtor that were not paid by 
any third-party payor and were greater 
than the lesser of— 
‘‘(I) 10 percent of the debtor’s 
adjusted gross income (as such term 
is defined in section 62 of the Internal 
Revenue Code of 1986); or 
‘‘(II) $10,000; 
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‘‘(ii) did not receive domestic support 
obligations, or had a spouse or dependent 
who did not receive domestic support obli-
gations, of at least $10,000 due to a med-
ical issue of the person obligated to pay 
that would cause the obligor to meet the 
requirements under clause (i) or (iii), if the 
obligor was a debtor in a case under this 
title; or 
‘‘(iii) experienced a change in employ-
ment status that resulted in a reduction in 
wages, salaries, commissions, or work 
hours or resulted in unemployment due 
to— 
‘‘(I) an injury, deformity, or dis-
ease of the debtor; or 
‘‘(II) care for an injured, de-
formed, or ill dependent or non-
dependent parent, grandparent, sib-
ling, child, grandchild, or spouse of 
the debtor; or 
‘‘(B) a debtor who is the spouse of a debt-
or described in subparagraph (A).’’. 
(b) CONFORMING AMENDMENTS.—Section 104 of 
title 11, United States Code, is amended— 
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(1) 
in 
subsection 
(a), 
by 
inserting 
‘‘101(39C)(A),’’ after ‘‘101(19)(A),’’; and 
(2) 
in 
subsection 
(b), 
by 
inserting 
‘‘101(39C)(A),’’ after ‘‘101(19)(A),’’. 
SEC. 3. EXEMPTIONS. 
(a) EXEMPT PROPERTY.—Section 522 of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(r)(1) If a medically distressed debtor exempts prop-
erty listed in subsection (b)(2), the debtor may, in lieu 
of the exemption provided under subsection (d)(1), elect 
to exempt the debtor’s aggregate interest, not to exceed 
$250,000 in value, in property described in paragraph (3) 
of this subsection. 
‘‘(2) If a medically distressed debtor exempts prop-
erty listed in subsection (b)(3) and the exemption provided 
under applicable law specifically for the kind of property 
described in paragraph (3) is for less than $250,000 in 
value, the debtor may elect to exempt the debtor’s aggre-
gate interest, not to exceed $250,000 in value, in any such 
property. 
‘‘(3) The property described in this paragraph is— 
‘‘(A) real property or personal property that the 
debtor or a dependent of the debtor uses as a resi-
dence; 
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‘‘(B) a cooperative that owns property that the 
debtor or a dependent of the debtor uses as a resi-
dence; or 
‘‘(C) a burial plot for the debtor or a dependent 
of the debtor.’’. 
(b) CONFORMING AMENDMENTS.—Section 104 of 
title 11, United States Code, is amended— 
(1) in subsection (a), by inserting ‘‘522(r),’’ 
after ‘‘522(q),’’; and 
(2) in subsection (b), by inserting ‘‘522(r),’’ 
after ‘‘522(q),’’. 
SEC. 4. WAIVER OF ADMINISTRATIVE REQUIREMENTS. 
(a) CASE UNDER CHAPTER 7.—Section 707(b) of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(8) Paragraph (2) does not apply in any case 
in which the debtor is a medically distressed debt-
or.’’. 
(b) CASE UNDER CHAPTER 13.—Section 1325(b)(1) 
of title 11, United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
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‘‘(C) 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 ‘‘apply with respect to’’. 
SEC. 6. STUDENT LOAN UNDUE HARDSHIP. 
Section 523(a)(8) of title 11, United States Code, is 
amended by inserting ‘‘the debtor is a medically distressed 
debtor or’’ before ‘‘excepting’’. 
SEC. 7. ATTESTATION BY DEBTOR. 
Section 521 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(k) If the debtor seeks relief as a medically dis-
tressed debtor, the debtor shall file a statement of medical 
expenses relevant to the determination of whether the 
debtor is a medically distressed debtor, which statement 
shall declare under penalty of perjury that such medical 
expenses were not incurred for the purpose of bringing the 
debtor within the meaning of the term medically distressed 
debtor.’’. 
SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this 
Act shall take effect on the date of enactment of this Act. 
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(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this Act shall apply only with respect to 
cases commenced under title 11, United States Code, on 
or after the date of enactment of this Act. 
Æ 
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