Are HSA accounts a protected asset in a Chapter 7?
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Are HSA accounts a protected asset in a Chapter 7?
Are HSA accounts a protected asset in an AZ bankruptcy?
Asked on March 29, 2011 under Bankruptcy Law, Arizona
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
HSA Accounts (health savings accounts) are usually used by those who have the ability to put monies into an account pre-tax to save money on those expected expenses throughout the year for things like prescriptions and co-pays and other medical bills. Usually these are not protected accounts or protected assets in a Chapter 7. I understand you might be able to have one wild card choice in a bankruptcy (something you get to keep) but am unsure if it applies simply to products and property or also to monetary accounts. Consult with the trustee with what assets can be protected and if it is too late to protect this asset. Review any paperwork you have and if you have not yet filed, find out if you can use this as your wild card exemption. Keep in mind, that wild card exemption only goes up to a certain amount though.
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