Intro by Elizabeth Little, Faegre Drinker Biddle & Reath LLP
On Feb. 2, five senators proposed the Medical Bankruptcy Fairness Act of 2021. The proposed legislation is intended to ease procedures for individual debtors to discharge medical debt and student loans. Proposed in response to the financial hardships caused by medical debt and COVID-19 public-health related shutdowns, the bill proposes to eliminate the “undue hardship” requirement for the discharge student loan debt, revise the homestead exemption, allowing for protection of up to $250,000 in home equity and eliminate the credit counseling requirement for individual debtors. Read more from Forbes here.
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