Anyone considering filing for bankruptcy in California will greatly benefit from contacting our office and scheduling a consultation. During the consultation, we will discuss the details of filing for bankruptcy and help you gain a fresh financial start of being rid of debts. However, filing for bankruptcy is not as simple as checking a box on a piece of paper.
It is a complex preceding that one must handle correctly to ensure that he or she keeps as much of their assets as possible. This can be especially important for those who have a lot of personal jewelry and want to ensure that it will not be sold to pay back debts.
Can I keep my jewelry if I file for bankruptcy in California?
Potentially. This is not a straight yes-or-no answer. As with many things in the law, there are caveats and rules that must be applied when it comes to each individual case. With bankruptcy, it comes down to an exemption. Exemptions are put in place to allow those filing for bankruptcy to exempt or keep out of the bankruptcy certain assets.
To fully understand how this works, know that once a person files for bankruptcy, anything they own can become part of the estate. Anything within the estate can be used to pay back creditors. This makes it necessary to exempt or keep specific assets out of the estate that a person does not want to sell.
In most cases, people who own a home will try to keep their home out of bankruptcy, as an example. Also, many people want to keep their vehicles out of bankruptcy to ensure that they can continue to drive them.
How to handle the exemption process
In this case, an exemption may be necessary and an individual may need to reaffirm those debts if there is a current loan on them. With personal jewelry, the desire to keep it is typically not based on practicality or necessity but on sentimental attachments. The process can make it even more important to keep the jewelry than it will be to retain ownership of a car, boat, etc.
With personal jewelry, the desire to keep it is typically not based on practicality or necessity but on sentimental attachments. The process can make it even more important to keep the jewelry than it will be to retain ownership of a car, boat, etc.
Ultimately, when answering the question, “Can I keep my jewelry if I file for bankruptcy in California?” it comes down to which exemptions a person chooses to use. In California, people have the option of choosing between two different exemptions. This ability to choose allows for decisions to be carefully made regarding which assets are the most important to an individual. Since the decision regarding which option to select can be complicated, it is wise to consult with a bankruptcy attorney.
Call our office
As a bankruptcy attorney, our job is to help our clients to be free from unwanted debt while helping them to maintain as many of their assets as possible. We understand the law and various exemption options intimately. We will make detailed recommendations regarding the best way to maintain ownership of personal jewelry. To learn more, schedule an appointment with our office.
NOTE: This is for informational purposes only and does not constitute legal advice.