When facing bankruptcy in Wyoming, one common concern is whether personal assets, like a wedding ring, can be retained. Whether you can keep your wedding ring in bankruptcy depends on your state’s exemption laws, the type of bankruptcy filed (Chapter 7 or Chapter 13), and the total value of your jewelry. While many filers retain their rings, it’s not guaranteed, especially if the ring is of great value. Please continue reading as we explore what you should know about these matters and the importance of connecting with our determined Gillette Bankruptcy Lawyers for guidance.
Can I Keep My Wedding Ring When I File for Bankruptcy in WY?
In Chapter 7 bankruptcy, non-exempt assets are sold by the trustee assigned to your case to satisfy outstanding debts. However, state laws provide exemptions that allow debtors to retain certain property. Many states have specific exemptions for jewelry, typically with a monetary limit.
In Wyoming, a wedding ring is generally retained during bankruptcy proceedings as it is shielded under state law as “necessary wearing apparel.” State law specifies that necessary wearing apparel excludes all forms of jewelry except for wedding rings. Consequently, the value of a wedding ring does not contribute to the $2,000 limit designated for wearing apparel. Unlike other categories of jewelry, wedding rings are not subject to standard exemption limits on personal property. Debtors are required to utilize the state exemption system and are prohibited from employing federal exemptions.
In Chapter 13, debtors with regular income can propose a repayment plan to pay off their debts over the span of three to five years. Under this type of bankruptcy, you generally retain all of your assets, whether exempt or not. However, the value of non-exempt assets is used to determine the amount you must pay to unsecured creditors. This means you will get to keep your wedding ring, but the non-exempt value may increase your monthly plan payment.
It’s important to refrain from transferring the ring to someone before filing for bankruptcy to avoid it being part of the bankruptcy estate. Such actions may be deemed as a fraudulent transfer and lead to harsh penalties.
What if the Ring Has a High Value?
In most cases, bankruptcy trustees are disinclined to seize a wedding ring due to its inherent sentimental value. However, should the wedding ring possess exceptionally high monetary value, a trustee may contend that its costly component ( such as a significant diamond) does not fall under the purview of the protected ring itself. In such a scenario, the available options may include negotiating with the trustee to remit the non-exempt portion of the value to retain possession of the ring or repurchasing the ring from the bankruptcy estate at its appraised value.
For more information, please don’t hesitate to contact an experienced attorney at 307 Bankruptcy.
