Funds for Injured Worker's MSA Can't Be Included in Bankruptcy Estate

A federal bankruptcy judge in Pennsylvania this week ruled that an injured worker who blew through almost all of the proceeds from the $297,741.88 settlement of his comp claim in less than two years – including most of the $72,741.88 in a Medicare set-aside account – gets to keep all of the stuff he bought with the money. Chief Bankruptcy Judge Mary D. France on Monday ruled that the cars, houses and liquid balance of Jesus Arellano's settlement monies were out of the reach of his creditors, pursuant to 11 U.S.C. Section 522(d)(11)(E). The statute allows a bankruptcy debtor to...