When you file bankruptcy you will list all of your assets, meaning everything you own. This includes your jewelry.
In a bankruptcy case you will get exemptions to protect your assets. In Minnesota you can use either federal or state exemptions.
For jewelry, including your wedding ring, under federal law you can exempt up to $1,875 (11 U.S.C §522(d)(4)). Under state law you can exempt up to $3,308 in jewelry (Minn. Stat. 550.37 Subd. 4(c)). Under both Minnesota law and federal you can also choose to use a wildcard exemption to protect your assets. Under federal law this is $1,475, plus up to $13,950 of your unused homestead exemption (11 U.S.C §522(d)(5)). If you rent or do not have equity in your home that would mean your wildcard exemption is $15,425. Under state exemptions the wildcard is $1,500 (Minn. Stat. 550.37 Subd. 28).
For example, if your wedding band is worth $10,000 and you rent your residence, under federal exemptions you would use your jewelry exemption and then the wildcard to eat up the rest of the value.
If you cannot exempt the full amount of your wedding ring with the exemptions available to you, your attorney would discuss implications in a chapter 7 case or terms in a chapter 13 case. During a chapter 7 case you either have to buy back your non-exempt assets from the bankruptcy estate or they may be subject to liquidation. During a chapter 13 case you keep all of your non-exempt assets, but you have a monthly payment plan.
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