Wednesday, January 23, 2013

Will I lose my wedding ring when I file bankruptcy?

Most people know that wedding rings, especially with diamonds, can cost thousands of dollars when they are purchased from the jewelry store. But the “value” of the ring on your finger is very different from what you paid to Zales.

When any property is valued for filing a bankruptcy, its current “value” is generally how much the item would sell for in a second-hand market.  For most jewelry items value is set at what a pawn shop would be willing to purchase the item for.  Typically pawn shops will buy jewelry at 10 – 15% of its retail value.  So that $3,000 ring is actually a $300 - $400 ring.

Luckily you can’t put a price on sentimental value, so even though your wedding ring or the ring grandma gave you is invaluable in your eyes, the trustee will not think it has much value unless it is something truly exceptional.  If you truly have a remarkable diamond, let your attorney know so you can discuss options for protecting your property.

For a free consultation to discuss your debt options, call us at 503-352-3690. You may also find information about our firm at www.pacificbankruptcy.com.