When times get tough, you can rack up a lot of debt and need to start over. But are HSA funds protected if you file for bankruptcy?
Consult with a professional
The decision to file for Chapter 7 or Chapter 13 bankruptcy is complex. If you're exploring the implications, we recommend you consult a certified credit counselor, accountant, or bankruptcy attorney.
HSAs and bankruptcy: State-by-state basis
Under federal law, most retirement assets are exempt from being part of the debtor’s bankruptcy estate and are therefore protected. However, federal law allows the states to determine whether health savings accounts are exempt from creditors.
If you have specific questions about HSAs and bankruptcy laws for your state, consult a local certified professional like an attorney.