Cohen Chairs Hearing on Medical Bankruptcy Fairness Act

WASHINGTON, D.C. – Congressman Steve Cohen (TN-9), Chairman of the House Judiciary Subcommittee on Commercial and Administrative Law (CAL), today held a hearing on the Medical Bankruptcy Fairness Act (H.R. 901) – legislation authored by Congresswoman Carol Shea-Porter (NH-1).

“The Medical Bankruptcy Fairness Act would help families keep their homes if they are facing bankruptcy due to unexpected medical bills,” said Congressman Cohen. “Today’s hearing provided us with valuable insight into how the measure could help thousands of people across the country if enacted.”

The legislation would provide a safety net for people who are in a financial crisis due to a personal or family medical catastrophe. A 2009 Harvard study found that 62 percent of bankruptcies are caused, at least in part, by medical debt.

The measure would also protect $250,000 in the value of the medically distressed debtor's residence and protect such a debtor or a family caregiver from having their case dismissed or referred to Chapter 11 or 13.

The following witnesses testified at today’s hearing:

• The Honorable Cecelia Morris, Judge, U.S. Bankruptcy Court for the Southern District of New York
• Aparna Mathur, Ph.D., American Enterprise Institute
• Peter Wright, Franklin Pierce Law Center