All debtors are required to disclose their property in a Chapter 7 and Chapter 13 bankruptcy. Many clients get concerned when they have to list their wedding rings as an asset. However, the law provides an exemption that can be applied to exclude your wedding ring from your bankruptcy case.
Most states allow a debtor to keep a wedding band and engagement ring, regardless of value, because they are considered fully exempt. In Wisconsin, your personal property (including your jewelry) can be exempted in an amount up to $12,000, aggregate value. It is important to remember that the value of your rings may be much lower than what you paid for it. Thus, your bankruptcy lawyer will use the liquidation value (what you could sell the rings for or their replacement value) in your filing. In most cases, this amount is well within the exemption amount, especially since married couples who file a joint bankruptcy in Wisconsin are allowed to double the exemption amounts.
Finally, bankruptcy trustees are human and they understand the sentimental value of your wedding rings, so they are reluctant to seize them anyway. In the majority of cases, the adminstrative expenses associated with going after low value, non-exempt assets is not worth it. So, unless your ring rivals those of Hollywood stars, you can probably rest easy about keeping your wedding rings in your Chapter 7 or Chapter 13 filing.
The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.