For many people, making the decision to file for bankruptcy can be incredibly overwhelming. However, for those seemingly drowning in debt, bankruptcy may be the only option. Unfortunately, this can leave many wondering what will happen to their property, specifically wedding rings, during this process. If you are concerned about losing your wedding ring during bankruptcy, you’ll want to keep reading. The following blog explores what you should know about these matters, including what to expect during this process and the importance of working with Columbus Chapter 7 bankruptcy lawyers to explore your legal options.
What Happens During Chapter 7 Bankruptcy?
When you file for bankruptcy, you’ll need to declare a chapter. Many people pursue Chapter 7 for a number of reasons, including the fact that it’s generally less expensive and a much faster process, typically only taking six months. However, the trade-off for these benefits is that Chapter 7 involves the liquidation of non-exempt assets to repay as much debt to the creditors as possible. Once all eligible assets have been seized, the remaining eligible debt can be forgiven.
It’s important to understand that there are both state and federal exemptions that filers can rely on to help protect their property. However, your choice will vary by state, and, in Ohio, you are required to use the state exemptions, as they have “opted out” of federal exemptions.
Commonly used exemptions in Ohio include the homestead exemptions, which allow you to protect around $182,000 in home equity so long as it is applied to your residence. The state also offers a wildcard exemption, which can be applied to any personal property of your choosing, up to $1,675 in value.
Will My Wedding Ring Be Seized?
One of the most common fears filers have prior to pursuing bankruptcy is that their wedding ring will be seized and used to repay creditors.
As of right now, there is no official ruling that allows those filing to retain their wedding rings during bankruptcy. However, other states have deemed that wedding rings are considered part of “necessary wearing apparel,” not unsimiliar to your clothing or shoes, and thus often do not take the ring.
However, you should note that Ohio offers a number of personal property exemptions, including one for jewelry. This means, should the trustee attempt to seize and sell your wedding ring, you can exempt the asset as the jewelry exemption protects up to $2,125 in value.
If you are worried about losing your wedding ring during bankruptcy, it’s in your best interest to connect with an experienced attorney with Cousino & Weinzimmer LLC. Our team understands that bankruptcy can be overwhelming, which is why we are committed to helping our clients navigate this process so they can reap the full benefits. If you need help, don’t hesitate to contact us today to learn more.
