Can I Keep My Jewelry If I File Bankruptcy?

Many individuals inquire as to whether they can keep their jewelry if they file for Chapter 7 bankruptcy in Kansas City.  The answer depends on how much your jewelry is worth.  In Kansas an individual is entitled to a $1,000 exemption for jewelry.  If you are married and filing bankruptcy jointly in Kansas you are entitled to a total of $2,000 in jewelry as exempt.  See K.S.A. 60-2304(b).  http://kansasstatutes.lesterama.org/Chapter_60/Article_23/60-2304.html  For example, if you are married in Kansas and the husband owns a wedding band valued at $300 and the wife owns an engagement ringt valued at $1,300 you would be able to keep both items, as you could combine your exemptions for a $1,600 exemption out of $2,000 allowed.

In Missouri an individual is entitled to a $1,500 exemption for a wedding ring and an additional $500 exemption for other jewelry.  If you are married and filing jointly in Missouri you are entitled to a total exemption of $3,000 for wedding rings and an additional $1,000 total exemption for other jewelry.  See R.S. Mo. 513.430.1(2)  http://www.moga.mo.gov/statutes/c500-599/5130000430.htm  For example, if you are married and the husband has a wedding band valued at $800 and the wife has an engagement ring valued at $2,000 then you would be able to keep both items, as you would still be under the $3,000 wedding ring exemption.  You would also be entitled to exempt a combined total of $1,000 for any other jewelry pieces you may have.

Your jewelry should be valued at its current fair market value, not the purchase price.  If you are considering bankruptcy in Kansas City and are concerned about the value of your jewelry, I suggest you have it appraised or check the sale price of the item from a retailer.  For more information please visit my website at http://www.thesmalleylawfirm.com