Just because you are filing for bankruptcy does not necessarily mean you have to give up that precious piece of jewelry. There are several factors to consider when determining if you can keep jewelry in bankruptcy.

1. How much is it worth?

The first thing you must determine is the value of the jewelry. Remember, it’s not value to purchase it new, but the value in its current condition. Ask yourself – how much can I get for this at a pawn shop? Or ebay? It may be worthwhile (depending on how expensive the jewelry is) to get it appraised.

2. Can I exempt it?

The next issue is if you can exempt or keep the item. In Chapter 7 bankruptcy, you are only entitled to keep so much property. In California, there is a generous exemption scheme. For jewelry, there is a separate exemption of $1,350. What happens if the jewelry you want Continue Reading »