Tag Archives: wedding

Can I Keep my Wedding Rings in Bankruptcy?

 

Individuals who are struggling to make ends meet often turn to bankruptcy to take control of their finances. When you file for bankruptcy, the court requires you to list all of your assets. Many clients get concerned when they learn that they must list their wedding rings on the list of assets. However, the Bankruptcy Code provides numerous exemptions that can be applied to exclude certain types of property from being included in your bankruptcy estate. Wedding rings are usually covered by exemptions.

wedding rings pic

Federal law provides an exemption for wedding rings. Additionally, each state has its own set of bankruptcy exemptions and most allow a debtor to keep wedding bands and engagement rings. In fact, they are often considered fully exempt, which means you can keep them regardless of their value.

In Florida, you are required to use the state bankruptcy exemptions. Florida does not provide a specific exemption for jewelry, but it does have a general personal property exemption. It allows you to keep any type of personal property (wedding rings, clothing, furniture, etc.) up to $1,000. This amount is doubled if you are married and file a joint bankruptcy case. Additionally, if you don’t need to use the homestead exemption to protect your house, you can exempt up to $4,000 of personal property.

It is important to understand that for bankruptcy purposes, the value of your rings will be significantly lower than what you paid for them. You will use the liquidation value (what you could sell the rings for) or their replacement value. One of our seasoned bankruptcy attorneys can assist you with determining the appropriate value of your rings before you file your case.

You should also understand that in many cases, the administrative expenses associated going after a low-value, non-exempt asset is not worth it to the trustee. They understand the sentimental value of your wedding rings and are typically reluctant to seize them. Thus, unless your rings are extremely high-value, it is likely you will be able to keep them in your bankruptcy filing.

To learn more about filing for bankruptcy protection and how it will impact your various different assets, contact the legal team at Faro & Crowder for help. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.

Marriage or Bankruptcy – Which Should Come First?

Bky or Marriage pic

If you are drowning in debt and planning to get married soon, you should not only discuss your finances with your fiancé, but also with one of our experienced lawyers. We can help you determine the best timing for the filing of your bankruptcy and your marriage.

When you file a Chapter 7 or Chapter 13 case, you can discharge or eliminate the majority (if not all) of your debt. This includes credit card bills, medical debt, and a wide variety of other types of debt. Thus, filing a case before you get married can help you start your life together with a fresh financial start. It is important to understand that if your credit score is already low due to your delinquent accounts, filing for bankruptcy will probably not have a significant impact on your score.

After you have completed your bankruptcy case and discharged your debt, you can immediately start working to rebuild your credit score. Many of our clients are surprised to learn that with time and hard work, they are able to improve their credit score quicker than they expected.

If you don’t want to enter your marriage with the burden of your debt on your shoulders, contact us to discuss how a Chapter 7 or Chapter 13 can help you. We understand that planning for your wedding day is important, but let us assist you with planning for your financial future and get your marriage off to a solid start!

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

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