When you file a bankruptcy, you are required to disclose all of your assets. One question many debtors ask is what happens to their jewelry, specifically their wedding rings? In short, you can usually keep your wedding ring 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 Arizona, each spouse can exempt a wedding ring up to $1000 in value, according to A.R.S. § 33-1125(4). Remember, the value of your ring may be much lower than what you originally paid for it. The value is determined by the liquidation value, which is how much you could actually sell the item for, not how much you paid for it or its replacement value. In most instances, this amount is well within the exemption amount.
Even if your rings exceed the exemption amount, an experienced attorney like Dan Dodds knows a few tricks on ways that will allow you to keep your wedding rings. It is even possible you can pay the trustee the amount that exceeds the exemption. In reality, however, most trustees are reluctant to seize wedding rings anyway. Even trustees understand the sentimental value!! Additionally, most trustees don’t believe the administrative cost of going after low value, non-exempt assets is worth it. So, unless you diamond is comparable to the Hope Diamond, you can probably rest easy when it comes to keeping your wedding rings.
If you are considering filing a bankruptcy case, call The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Our firm is committed to protecting the rights and benefits afforded to all individuals under state and federal law, as well as the U.S. Constitution.