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Will I lose jewelry if I file chapter 7 bankruptcy?

We're going to file chapter 7 bankruptcy but I have several pieces of jewelry that I do not want to lose. Is there any guarantee that I will be able to keep all of my jewelry or will the bankruptcy trustee say I have to sell it to pay debts? Thanks.

Jewelry in bankruptcy

Unless you have a lot of very valuable jewelry, it is unlikely that you will lose it in the process of seeking bankruptcy protection.  Before you file, you should discuss your situation, and your jewelry, with a bankruptcy attorney so she can give you a more definitive answer. Whether you choose to use the federal or the Massachusetts exemptions after you file, a certain amount of jewelry can be exempted from the process.  Under a fairly new law, the exemption in Massachusetts for jewelry is currently $2,500.  Also, the various exemptions can be combined and utilized in ways that can provide additional protection.  Another reason to talk to a bankruptcy attorney about this matter.

If you have some question about the value of your jewelry, your attorney may suggest that you have it valued by a jewelry buyer, someone who will actually pay you the amount he quotes.  Used jewelry is seldom worth as much its owners believe, and that low valuation, in writing, can dampen the bankruptcy trustee's enthusiasm for attempting to liquidate some of your jewelry.  If the trustee disagrees with the valuation you obtained and ultimately decides your jewelry is valuable enough to go after, you are entitled to ask the bankruptcy judge to decide the issue of valuation.  Hope that helps.

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