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The Medical Bankruptcy Fairness Act of 2024 amends federal bankruptcy law to provide relief for debtors whose financial distress is caused by medical expenses or medical-related job loss. The bill defines 'medically distressed debtors' as those who incurred over $10,000 (or 10% of adjusted gross income, whichever is less) in unpaid medical debt within three years, or experienced employment changes due to illness or caregiving. For qualifying debtors, the bill waives certain administrative requirements in Chapter 7 and Chapter 13 bankruptcies, increases homestead exemptions up to $250,000, exempts them from credit counseling prerequisites, and allows discharge of student loans based on medical hardship.
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