Chapter 7 bankruptcy has set many people in the Miami area back on track financially. Also known as liquidation, this particular bankruptcy chapter is generally fair fast and when it is complete, most of a consumer’s debt is discharged.
Individuals deemed to have qualified for this type of bankruptcy will find that their assets are sold and the proceeds from those sales are given to creditors. There are many different types of assets that depending on the circumstances, may be liquidated under a Chapter 7 bankruptcy, including real estate, cars and jewelry.
For some married couples, having to sell their wedding rings is a difficult requirement. A couple in another state is doing what it can to recover a wedding ring. This particular couple has requested that the bankruptcy trustee sell the couple the ring rather than have it go through the liquidation process.
Some states, such as the one in which they reside, have exemptions for certain types of assets such as jewelry. In these states it may be possible to recover property of that type that is worth an amount within what is exempted. Despite the existence of this exemption, the couple is nonetheless requesting to pay for it with leftover proceeds from a sale of real estate. The request has been forwarded to a judge.
Though Florida does not have a jewelry exemption, it does however have a personal property exemption. In addition to jewelry, items such as clothes are also included in this type of exemption.
Anyone who has questions about what property can be kept, and how, under a Chapter 7 proceeding would likely benefit from consulting a bankruptcy attorney.
Source: Atascadero News, “Gearharts buying back wedding ring from bankruptcy for $814,” July 20th, 2012