by John Darer® CLU ChFC MSSC CeFT RSP CLTC
Are MSAs considered exempt property in bankruptcy?
Yes, in a January 2015 decision, the United States Bankruptcy Court for the Middle District of Pennsylvania has decided that assets in a Workers’ Compensation Medicare Set-Aside (WCMSA) are exempt property and therefore not available to creditors in a Chapter 7 bankruptcy case (In Re: Jesus Arellano, Debtor Steven M. Carr, Chapter 7 Trustee Objectant v. Jesus Arellano, Respondent. Decided January 5, 2015).
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Last updated December 11, 2025
