The law requires a debtor in bankruptcy to disclose all of his or her assets and property. Many clients ask what will happen to their jewelry, especially their wedding rings. The short answer is that you typically can keep your wedding rings but other jewelry may not be exempt under the law.
Most states allow a debtor to keep a wedding band and engagement ring, regardless of value, because they are considered fully exempt. In New York, each spouse can exempt a wedding ring, regardless of the value, but engagement rings can be another story. Federal exemptions may be necessary to protect it. Also, it is important to remember that the value of your ring may be much lower than what you originally paid for it. In fact, value should be determined by how much you could actually sell the ring for, not how much you paid for it or its replacement value. In most instances, this amount is well within the exemption amount.
An experienced attorney like Michael A. Koplen knows a few strategies for ways that will allow you to keep your wedding rings. In most circumstances, trustees are reluctant to seize wedding rings anyway. Even trustees understand the sentimental value!!
If you want to learn more about Chapter 7 or Chapter 13 bankruptcy, schedule an initial consultation with The Koplen Law Firm.
The attorneys at The Koplen Law Firm provide Rockland County and New York City residents with experienced legal representation in bankruptcy matters. We assist individuals seeking relief from their overwhelming debt in filing Chapter 7 or Chapter 13 bankruptcy. If you are considering filing for bankruptcy protection, or you want to discuss options for dealing with your debt, please contact us. In addition to handling all types of bankruptcy cases, our law firm can provide legal assistance with matters involving divorce and family law, personal injury, criminal defense, sexual harassment, and employment discrimination as well.