Over the years, education loans, medical bills, and mortgage repayments can soon pile up, which can leave you saddled with debt. So to help you avoid making basic errors when dealing with insurmountable debt, Sam Calvert, Attorney at Law, has put together a list of the most common mistakes people make when in debt.
Common Mistakes People Make When In Debt
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Subd. 26.Health savings accounts; medical savings accounts.
In 2018 the Minnesota legislature added an exemption to state law to protect health savings accounts (“HSA”) and medical savings accounts (MSA) up to $25,000.00 from creditors, other than divorce court/child support orders.
The new law, effective August 1, 2018 says that the following is exempt:
(a) All money held in a health savings account, as defined in the Internal Revenue Code of 1986, section 223(d), as amended, up to a present value of $25,000.
(b) All money held in a medical savings account, as defined in the Internal Revenue Code of 1986, section 220(d)(1), as amended, up to a present value of $25,000.
Judge Michael Ridgway recently issued an opinion that summarizes how to "avoid" judgment liens in bankruptcy. The case is In re Mus, case number 17-42895.
A little background: Most real estate in Greater Minnesota is "abstract property". In Hennepin and Ramsey much of the land is "Registered property", a/k/a "Torrens property". For this post I will ignore Torrens property. When a judgment is entered and docketed in District Court, the judgment becomes a lien on all abstract property in that county. The lien does not "attach" to property which is homestead property under state law; however, there is no way to determine if a piece of land is homestead or non-homestead. So, practically, a judgment is an apparent lien on any real estate you may…
IS BANKRUPTCY A BAD THING?
You will often hear that “bankruptcy is bad”, or that “bankruptcy is a forever mistake”. It is likely that the people who say bankruptcy is bad don’t understand the process. Each bankruptcy case is a little different, and people chose bankruptcy for many different reasons, most of which are beyond their control. Certainly, filing bankruptcy is not something to take lightly, but Congress created the bankruptcy law to help people get a fresh start on their finances. Medical bills are often cited as causing a large percentage of bankruptcies. For many people, unexpectedly losing a job puts them into a financial tailspin.…