Is my wedding ring protected in bankruptcy in Minneapolis, Minnesota?
When you file for bankruptcy, you will list everything you own. This includes jewelry. In a bankruptcy, you can get exemptions that protect your assets. In Minnesota, you can choose between federal and state exemptions. Under federal law, you can exempt jewelry, including your wedding rings, up to $1,875 (1 U.S.C. SS522(d),(4)). You can exempt jewelry up to $3,308 under Minnesota law (Minn. Stat. 550.37 Subd. 4(c)). You can choose to use the wildcard exemption under both Minnesota and federal law to protect your assets. Federal law allows you to use up to $13,950 from your unused homestead exclusion (11 U.S.C. SS522(d),(5)). If you do not own your home or rent, your wildcard exemption would be $15,425. Wildcard exemptions are $1,500 under state exemptions (Minn. Stat. 550.37 Subd. 28).
For instance, if you rent your home and your wedding band is worth $10k, you can use the federal exemptions to get the full value of your wedding ring. Then, you can use the wildcard to get the remaining value.
If the exemptions you have available do not allow you to exempt your entire wedding ring, your attorney will discuss the implications of a Chapter 7 case or the terms of a Chapter 13 case. In a chapter 7, you may have to buy your non-exempt assets back from the bankruptcy estate, or they could be liquidated. In a chapter 13, you can keep all your non-exempt property, but have to pay a monthly amount.
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