Mooney v. Webster
300 Ga. 283
Ga.2016Background
- Debtor Denise Mooney filed Chapter 7 and listed a Health Savings Account (HSA) worth $17,570.93, claiming exemptions under OCGA § 44-13-100(a)(2)(C) and (E).
- (C) exempts a debtor’s right to receive a “disability, illness, or unemployment benefit.” (E) exempts a “payment under a pension, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service.”
- The Chapter 7 Trustee objected; the Bankruptcy Court sustained the objection and the District Court affirmed; Eleventh Circuit certified questions of Georgia law to the Georgia Supreme Court.
- HSAs are federal tax-created accounts (26 U.S.C. § 223) allowing tax-favored savings for qualified medical expenses; distributions for nonqualified uses are taxable and penalized.
- The Georgia exemption statute does not explicitly list HSAs; the Court noted multiple post-HSA amendments to the exemption statute but no inclusion of HSAs.
Issues
| Issue | Mooney’s Argument | Trustee’s Argument | Held |
|---|---|---|---|
| Whether an HSA is a “disability, illness, or unemployment benefit” under OCGA § 44-13-100(a)(2)(C) | HSA funds are an illness benefit because they provide financial help for medical costs | HSA is broader than an illness benefit and is not the sort of benefit the statute contemplates | No — HSA is not an illness (or disability) benefit for (C) |
| Whether an HSA is a “payment under a pension, annuity, or similar plan or contract” under OCGA § 44-13-100(a)(2)(E) | HSA is a similar plan that pays for medical needs and thus should be exempt under (E) | HSA does not substitute for wages and is not a pension/annuity substitute for income | No — HSA is not a payment under a pension, annuity, or similar plan for (E) |
Key Cases Cited
- Silliman v. Cassell, 292 Ga. 464 (interpreting subsection (a)(2)(E) and requiring that exempt plans supply income as substitute for wages)
- Rousey v. Jacoway, 544 U.S. 320 (construing ERISA-type instruments in bankruptcy exemption context)
- Allstate Life Ins. Co. v. Miller, 424 F.3d 1113 (11th Cir.) (discussing statutory construction principles cited by parties)
- Walker v. Walker, 28 Ga. 140 (1859) (expressio unius est exclusio alterius doctrine cited for statutory construction)