Talked to attorney, how do you choose?

[needachance]

We had our meeting with the first attorney today. He seemed very cautious, wanted to look up everything. Is that a good thing? He specializes in bankruptcy but was very young.

Essentially he told us that as we have money in savings for a deductible and for winter living expenses (DH goes on job attached unemployment in the winter months), that is the only obstacle to a chapter 7 in our state. His advise so far, but he is going to do some research to be sure that HSAs rae not touchable, is that we max out an HSA and then basically wait till spring to file so our savings will be drained down from living off them in the winter. I wanted to be done with this by then, but if we lose our savings to the bankruptcy then we won't make it through the winter, so I guess it makes sense to wait.

[justbroke]

I know that HSAs are deductible as an expense (for actuals) in a Chapter 13. However, a Chapter 7 is different. There is no specific language in 11 USC 522 (the portion of the code on exemptions) that classifies HSAs as protected. Your State, however, may exempt them in Bankruptcy. If it's significant and sizable, I would lean to the Trustee asking questions and wanting documentation.

[tinfoilhat]

Everyone here has told me this, and I agree now. Go to as many consultations as you can. I wouldn't go with the first guy, well maybe, but you really need to see a few more before you decide.

[Amy26]

I have an HSA and I am "allowed" to keep it. It is listed as one of my exempt assets just like my checking accounts. I only have 500 dollars in it though......