Medical Bankruptcy Fairness Act of 2024

The Medical Bankruptcy Fairness Act of 2024 (S 5399) creates new bankruptcy protections for individuals facing financial hardship due to medical expenses. It defines "medically distressed debtors" as those with significant unpaid medical debt (exceeding $10,000 or 10% of income) linked to their own or a dependent's illness, injury, or care-related job loss. Key provisions include allowing these debtors to exempt up to $250,000 in primary residence value (instead of standard exemptions), waiving certain bankruptcy filing requirements, and expanding student loan hardship exceptions. The bill applies only to bankruptcy cases filed after enactment and requires debtors to attest under penalty of perjury to their medical expenses.