What happens to my Wedding Rings in a Chapter 7 Bankruptcy?
Will I lose my wedding rings if I declare a Chapter 7 Bankruptcy?
What do the Queen of England, Donald Trump and a Chicago Couple in Bankruptcy have in common? They all found themselves embroiled or referenced in a dispute where the Trustee attempted to take away the wedding bands of a couple declaring a Chapter 7 Bankruptcy.
A coupled with wedding bands exempted their bands to the limit of $1,500. The Trustee identified the bands as having a higher value than $1,500 and ostensibly attempted to exercise his power over the ring. The exemption was then modified to necessary wearing apparel which has an unlimited exemption amount.
In a colorful and historical analysis, the court concluded that wedding bands are necessary wearing apparel and that the exemption must stand. So, no you will not lose them. You can read the case here: