I am Filing for Bankruptcy, Will I Lose my Health Savings Account?

If you are considering filing for bankruptcy, you may be wondering if your assets and property will be protected. If you have a health savings account (HSA), you may be wondering whether or not you will be able to keep those funds. 

A Health Savings Account is a type of account where individuals can set aside money to be used to pay for future medical expenses. HSA funds can only be used for approved medical expenses and may not be removed for other purposes. 

When you file a bankruptcy, you can choose to use either the Minnesota State exemptions or the Federal exemptions. Exemptions are laws that protect a person’s property in bankruptcy. Which set an individual chooses depends on your specific circumstances, your bankruptcy attorney will help you decide which set it right for you. 

Under the Federal exemptions, there is no specific exemption for a Health Savings Account. However, under the Federal exemptions there is a wildcard exemption that can be used to protect any property. This exemption can be used to protect funds in an HSA. This exemption does have a limit, the exemption is limited to $15,425, this can be used to protect funds in an HSA. 

Under the Minnesota State exemptions there is a specific exemption for Health Savings Accounts. Under Minnesota law, the first $25,000 in a Health Savings Account is exempt from bankruptcy and judgment creditors. 

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

If you are dealing with a debt problem and have questions about your assets, it is important to discuss your options with a bankruptcy attorney. 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 will be glad you did!