Is a HSA (health Savings Account) a protected asset like an IRA in a BK7 filing?

[slvnomore]

Is a HSA (health Savings Account) a protected asset like an IRA in a BK7 filing? I have an old one for 3k that I cant contribute to anymore as my current Health Insurance is not an HSA. But I can use it for only medical expenses. Thanks!

[ld2366eh]

I have one and it was ignored by my attorney when we filed chapter 7 a few weeks ago....

[slvnomore]

thanks, so it was in the same catagory as IRAS?

[AngelinaCat]

We really do not know. I did not have an HSA when we filed in 2007. I have one now, that we created in 2009.

Here is a link to a March 2012 article about HSAs and BK:

http://wealthmanagement.com/financial-planning/health-savings-accounts

Here is a PDF decision in the Stanger case:

http://www.id.uscourts.gov/decisions-bk/0732.Stanger.Memo.pdf

It seems that it is up to the individual states as to whether the state's exemptions cover the HSAs or not. I am not an attorney. but I am certain that one of our attorney members will be along by and by and offer their opinions.

As far as not being able to contribute to an HSA because your current health insurance isn't tied to it: I do not know what that is all about, but in my case, we contribute to my HSA every year, and I pay my co-pays, office visits, and prescriptions, out of that. I have high-deductible insurance, and so far all is well. My insurance (BC&BS of Florida) would like me to use their preferred HSA company, but they have not insisted that I do so.

[ksgirl38]

I would think it would be the same as how a flexible spending account would be handled. I went with the don't ask don't tell option and I don't recall having to list what was in my FSA at the time.

[HHM]

It is NOT in the same category as IRA's.

The issue is largely undecided. I think many US Trustees, as a matter of policy, are leaving them alone for the time being, but that is by no means a permanent solution.

HSA's are at risk in BK, unless your state has adopted a specific exemption. However, some issues with HSA and why some may be protected and others not depend on the source of funds that used to fund the account and how long ago funds were deposited into the account.

Note: ksgirl38, hopefully you at least disclosed the existence of the FSA, if not, you committed BK fraud

[ksgirl38]

It is NOT in the same category as IRA's.

The issue is largely undecided. I think many US Trustees, as a matter of policy, are leaving them a lone for the time being, but that is by no means a permanent solution.

HSA's are at risk in BK, unless your state has adopted a specific exemption. However, some issues with HSA and why some may be protected and others not depend on the source of funds that used to fund the account and how long ago funds were deposited into the account.

Note: ksgirl38, hopefully you at least disclosed the existence of the FSA, if not, you committed BK fraud

It was on the lawyer's questionnaire, but I really wouldn't care anyway. Discharge was Thursday.