Filing for bankruptcy is never a fun process, especially when considering the important things you may have to give up. Your wedding ring may be financially valuable, but it likely also has sentimental significance and memories attached to it. If you are filing for bankruptcy and are wondering whether you can keep your wedding ring, continue reading and consult with a knowledgeable Bergen County bankruptcy lawyer today.
What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
Before discovering whether you can maintain possession of your wedding ring, it is important to understand which type of bankruptcy you are filing and how it can affect the answer to this question.
Chapter 7 is also referred to as liquidation bankruptcy. In this process, the trustee (an impartial party appointed to oversee the bankruptcy proceedings) will generally sell non-exempt assets in order to pay back creditors.
In Chapter 13, or reorganization bankruptcy, however, you generally keep all of your property and instead create a repayment plan to pay back creditors over the course of 3 to 5 years.
Is a Wedding Ring an Exempt Asset?
During bankruptcy, your assets are categorized as either exempt or non-exempt. Exempt assets are protected, and you generally have the right to retain ownership of them throughout the bankruptcy process. Non-exempt assets are not protected and are available to creditors to pay back debts.
You can choose to use either the New Jersey state or federal exemption limits. New Jersey’s exemptions are conservative compared to other states, so federal may be the better option, though it is wise to consult with your attorney. The federal exemption amounts were updated in April of 2025, and jewelry is now exempt up to $2,125 in value. There is also a wild card exemption, which can apply to any property. The wild card amount is $1,675, and any unused homestead value can also be applied up to $15,800. If the value of your ring fits within these limits, it can be considered exempt.
Can I Keep My Wedding Ring if I File for Bankruptcy in NJ?
You may be able to keep your wedding ring during the bankruptcy process, but it depends on the specifics of your circumstances. If you file under Chapter 13, then yes, you generally get to retain ownership of your assets, including jewelry. However, it is important to note that the value of the ring can influence the amount you are required to pay creditors over the course of your repayment plan.
If you file under Chapter 7, your ability to keep your wedding ring becomes slightly more complex. Because this process requires you to sell certain assets to pay back debts, it is important to understand whether your ring is exempt or not. If your ring’s value falls within the exemption limits as described above, you can keep it even after filing for bankruptcy. If not, the trustee could seize it.
It is important to note that you may have alternative options if your ring is not exempt, like making a cash payment of the value not covered by exemptions or offering a different asset with a similar value. For more information, reach out to a skilled bankruptcy lawyer today.