Protection for Homeowners with Medical Debt

[Kentucky-BK]

On January 28th, Rep. Shea-Porter (D-NH) introduced HR 5138 to the United States House of Representatives, a bill to amend Title 11 (the Bankruptcy Code) to provide protection for medical debt home owners, to restore bankruptcy protections for individuals experiencing economic distress as caregivers for ill or disabled family members and to exempt means testing for debtors whose financial problems were caused by serious medical problems. The bill was referred to the Judiciary Committee.
I have not yet had a chance to closely scrutinize the bill, but it appears that a significant change to the Bankruptcy Code may be in the works. In particular, I am interested to see how the proposed law would define "economic distress" and "serious medical problems".

[rrockinggramma]

I think there are a lot of tweaks coming down the pipes for this bk bill. Katrina and now the mortgage meltdown has opened up a few eyes in congress that maybe that bill wasn't such a good idea after all.

[Flamingo]

I think there are a lot of tweaks coming down the pipes for this bk bill. Katrina and now the mortgage meltdown has opened up a few eyes in congress that maybe that bill wasn't such a good idea after all.

How right you are - the main purpose of the BK reform was to eliminate all the fraud that was occuring with BK filings and to ensure that people who could afford to pay back some of the debt would do so. However, those with legitimate filings that experienced major life events such as job loss, major medical expenses, etc. during which they incurred large debts got hit the hardest and many believed that would eventually come out in the long run and changes would be made. And it has only been just over two years since the reform went into effect.

[lrprn]

Thanks for posting the information, Kentucky-BK.

By the way, I edited your signature to remove the link to your website. Our forum rules prohibit posting links like this in posts or your signature until you have made 100 legitimate posts or get prior permission from our administrator, Lazar.

[jane taylor]

For us, like many, these "tweaks" are too little, too late. My mortgage company in their efforts to help homeowners--LOL lowered our interest rate, a few months after we filed a motion to abandon our home of nearly 15 years.

Also, much of our debt was caused by job loss and medical expenses.

Oh well . . .

jane

[Kentucky-BK]

The following link leads to a website tracking the progress of the proposed change to the Bankruptcy Code: GovTrack.us. You can additionally view the full text of the bill on that website.

Thanks for editing my signature for compliance with the forum rules lrprn. Sorry about that.