Can the Trustee Really Take My Wedding Rings?!
Can the Trustee Really Take My Wedding Rings?!
The answer to this is no…and yes. In Arizona, wedding rings are exempt up to $2,000. This means that for both you and your spouse, you can exempt a total of $2,000 of the value of your wedding rings. For most people, this is more than enough to keep their rings safe. But what if, during better economic times, you purchased more expensive jewelry? Technically, the Trustee can have you turn over your jewelry. Does this happen often? No. Could it? It could.
It is up to you to list the value of your assets on your bankruptcy petition. You are to use what is called “garage sale value” – or, essentially, “What could you get for it if you put a sign in your front yard and tried to sell it?” When you think about it this way, you realize that the couch you paid $1000 for is worth maybe 35 dollars when placed in your front yard. It might have sentimental value to you, but what is the average person likely to say it is worth? The same goes for your rings. They are special to you and they might have cost you nearly $2,000 when you purchased them years ago, but what would someone pay for them at a garage sale today? Are the stones real? Are any stones missing? Are the rings damaged, bent, or discolored? If you happened upon them at a yard sale, what would YOU offer the owner for them?
Let’s say that your rings ARE worth in excess of $2,000. What can you do if the Trustee demands your jewelry? If the Trustee thinks your jewelry is worth $3,000 instead of the $1,500 you valued it at, you can offer to pay the trustee $1,000, or the difference between the exemption you are entitled to and the value the trustee had placed on your jewelry. In this way, you can buy your property back. It might sound like you are getting the short end of the stick, but think of it this way – how many thousands of dollars of debt are you going to be let off the hook from? If you are discharging $80,000 in credit card debt, is paying $1,000 for your wedding band a deal breaker when you look at the big picture?
Remember, it is not your wedding bands that make your marriage what it is. It isn’t the property you have accumulated with your spouse. It is the love you have for each other that makes your lives together worth sharing. “For richer and for poorer…” might have been part of the vows you both took when you married. Bankruptcy is a stressful process and it is natural to want to hold on to what you hold dear. If you are married, remember that the Trustee may technically be able to take your wedding jewelry, but that doesn’t mean they will, and you have the option of paying the difference to get your property back. If you cannot and this happens, you are no less a married couple. That is something that no Trustee can take from you.
