Believe it or not, in a bankruptcy, there are Texas bankruptcy exemptions for jewelry. The rules vary from state to state, but many states provide a certain amount of money towards protecting valuable pieces of jewelry through property exemption.
When seeking to protect a family heirloom or a wedding ring, understanding what property exemption you have is more crucial during Chapter 7 bankruptcy. If you file under Chapter 13, you have the luxury of keeping all of your property and simply making a plan to repay your debts.
In Chapter 7 cases, liquidation of assets is the key to alleviating debts. Therefore, it is important to understand how you can protect your diamonds and pearls from being liquidated alongside your couch and kitchen table.
Know Your Options
Exemptions are created so that individuals filing Chapter 7 bankruptcy can keep the essentials. For many people, jewelry is a treasure they don’t want to part with. Luckily many states offer standard exemptions for this exact purpose.
A number of states offer a wedding and anniversary ring exemption that protects those pieces of jewelry regardless of actual value. Other states have heirloom exemptions and others have general jewelry exemptions up to a certain amount of value.
Jewelry is not a priority for everyone, but for many people, their families and loved ones live on in engagement rings, jeweled pendants, and gold necklaces. If you are interested in protecting these types of valuables, check with your bankruptcy lawyer about the practical steps you can take.