To provide protection for medical debt homeowners.

SA 29. Mr. KENNEDY proposed an amendment to the bill S. 256, to amend
title 11 of the United States Code, and for other purposes; as follows:

On page 191, between lines 11 and 12, insert the
following:

SEC. 322A. EXEMPTION FOR MEDICALLY DISTRESSED DEBTORS.

Section 522 of title 11, United States Code, as amended by
sections 224, 308, and 322, is amended by adding at the end
the following:
``(r)(1) For a debtor who is a medically distressed debtor,
if the debtor elects to exempt property--
``(A) under subsection (b)(2), then in lieu of the
exemption provided under subsection (d)(1), the debtor may
elect to exempt the debtor's aggregate interest, not to
exceed $150,000 in value, in real property or personal
property that the debtor or a dependent of the debtor uses as
a residence, in a cooperative that owns property that the
debtor or a dependent of the debtor uses as a residence, or
in a burial plot for the debtor or a dependent of the debtor;
or
``(B) under subsection (b)(3), then if the exemption
provided under applicable law specifically for such property
is for less than $150,000 in value, the debtor may elect in
lieu of such exemption to exempt the debtor's aggregate
interest, not to exceed $150,000 in value, in any such real
or personal property, cooperative, or burial plot.
``(2) In this subsection, the term `medically distressed
debtor' means a debtor who, in any consecutive 12-month
period during the 3 years before the date of the filing of
the petition--
``(A) had medical expenses for the debtor, a dependent of
the debtor, or a member of the debtor's household that were
not paid by any third party payor and were in excess of 25
percent of the debtor's household income for such 12-month
period;
``(B) was a member of a household in which 1 or more
members (including the debtor) lost all or substantially all
of the member's employment or business income for 4 or more
weeks during such 12-month period due to a medical problem of
a member of the household or a dependent of the debtor; or
``(C) was a member of a household in which 1 or more
members (including the debtor) lost all or substantially all
of the member's alimony or support income for 4 or more weeks
during such 12-month period due to a medical problem of a
person obligated to pay alimony or support.''.
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