Of course, your wedding ring holds great symbolism and sentimental value to you. This may be one of the last things you are willing to liquidate in bankruptcy. But at the same time, you may find it frivolous to refrain from a bankruptcy filing simply to hold onto this piece of jewelry, especially given the severity of your current financial state. Nonetheless, if this is a prevalent concern of yours, please follow along to find out whether you will get to keep your wedding ring in bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. P.C. can help you protect what is most valuable to you during this very difficult time.
Will I be able to keep my wedding ring in bankruptcy?
Notably, New York State is unique in that it observes what is commonly referred to as the wedding ring exemption. This means that each spouse’s wedding ring is considered to be an exempt asset, in which your appointed bankruptcy trustee cannot seize and sell to satisfy your outstanding creditors. Importantly, this is regardless of the monetary value each wedding ring is known or approximated to carry.
However, you must understand that this bankruptcy exemption may only apply to your and your spouse’s wedding rings and not your engagement ring. That is, your wedding rings are the bands that are exchanged during a marriage ceremony. This is while an engagement ring is typically a piece of jewelry gifted from one partner to another as a symbol of the impending marriage commitment.
How can I get an exemption for my engagement ring in bankruptcy?
Understandably, in your eyes, your engagement ring may be as meaningful as your wedding band. Well, rest assured, you may adopt certain strategies to protect your engagement ring, as well. For one, you should educate yourself on New York State’s jewelry exemption. This exemption covers engagement rings, but also other jewelry, watches, and artwork of up to $1,175. To ensure your ring does not exceed this cap, it is in your best interest to get an appraisal by a professional jeweler.
Well, say that an appraiser believes your engagement ring is worth more than $1,175. This is when you may consider opting for federal exemptions instead. Namely, the federal jewelry exemption is $1,875. But also, the wildcard exemption is $1,675 plus $15,800 of any unused portion of the federal homestead exemption, which you may apply to your ring. This is compared to New York’s wildcard exemption of $1,175, which is only available if you do not use the state’s homestead exemption.
Understandably, this may all seem like a headache during this especially overwhelming time. Well, to alleviate some of the pent-up stress, please turn to the legal aid of a talented Rockland County bankruptcy attorney. Contact our office, The Law Offices of Allen A. Kolber, Esq., P.C., right now; someone will be more than happy to speak with you.
