• Federal Bankruptcy Code: While some federal exemptions might seem applicable, courts have generally ruled that HSAs don’t fall under these protections. 
   
• Illinois State Law: Illinois does not have specific exemptions for HSAs in its state bankruptcy laws.  
   
• Wildcard Exemption: You might be able to use the Illinois “wildcard exemption” to protect a limited amount of your HSA funds. This exemption allows you to claim up to $4,000 of any personal property, including your HSA.
   

HSAs are accounts that can hold tax-free earnings and contributions made by employers. However, account holders may face penalties if they use HSA funds for non-medical expenses. 

Disclaimer: This information is for general knowledge and guidance only and does not constitute legal advice. You should always consult with a qualified bankruptcy attorney for specific advice regarding your situation.

Key Considerations:

• Consult with a Bankruptcy Attorney: Discuss your specific situation with an experienced bankruptcy attorney in Illinois. They can assess your individual circumstances and advise you on the best course of action to protect your assets, including your HSA.
• Understand Bankruptcy Laws: Familiarize yourself with the complexities of bankruptcy law, including exemptions and the potential impact on your HSA.

I hope this information is helpful!

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