If I file for bankruptcy, will I lose my health savings account?
If you are thinking about filing for bankruptcy you may wonder if your property and assets will be protected. You may wonder if you can keep the funds in your health savings account. A Health Savings Account allows individuals to set money aside to be used for future medical expenses. HSA funds may only be used to pay for approved medical expenses. They cannot be used for any other purpose. When you file for bankruptcy, you have the option to use the Minnesota State Exemptions or the Federal Exemptions. Exemptions are laws which protect a person’s property during bankruptcy. Your bankruptcy attorney can help you determine which set is right for you based on your circumstances. Under the Federal exemptions there is no specific exemption to a Health Savings Account. Under the Federal exemptions, there is a wildcard exception that can be used to safeguard any property. This exemption can be applied to funds in an HSA. This exemption has a limit. The exemption is only $15,425. This can be used to safeguard funds in an HSA. Under the Minnesota State Exemptions, there is a specific Health Savings Account exemption. Under Minnesota law the first $25,000 of a Health Savings Account are exempt from bankruptcy creditors and judgment creditors. Call Now for a Free Strategy Session with an MN Bankruptcy Lawyer at LIFEBACK LAW Firm
If your debt is a problem and you have questions about assets, it’s important to speak with a bankruptcy lawyer. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit
www.lifebacklaw.com
to speak with an attorney. You’ll be glad you did it!
