NJ Bankruptcy Law Firms

66 East Main Street, 3rd Floor
Little Falls, NJ 07424
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Bankruptcy Assets – Rings?

New Jersey Bankruptcy Lawyer!

With 30+ Years of Proven results!
"I personally meet with You and represent You!"
"I have never Lost a Chapter 7 Bankruptcy Case"
"Experience = Results"
About Ralph A. Ferro Bankruptcy Lawyer

Bankruptcy Assets – Rings?

bankruptcy assets

Written and Verified by Ralph A. Ferro, Jr., Esq.

Assets can be protected in bankruptcy.   However, you must disclose them.    Whether you are filing a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, when you meet with me for a free bankruptcy consultation, I will review:

  1. What Bankruptcy is best for you.
  2. Assets and how they affect your bankruptcy filing

Here is an example of a Valentine’s Day Ring that Debtor threw in the lake.  The Trustee with the help of a scuba diver – recovered the bankruptcy asset.

Bankruptcy Assets – Ring is an Asset

  • Debtors said they forgot about a ring worth $46,295 when they filed for bankruptcy.
  • Wife stated she threw the ring into a nearby lake because it reminded her of her husband’s marital infidelity.
  • Husband admitted purchasing the ring for $31,000, had the ring reworked for another $4,510.
  • Appraisal had been done and the ring was valued at $46,295.
  • Coincidentally the ring was listed on their insurance policy for $46,295.
  • Debtors explained it was wife’s sister’s ring and finally admitted it was their ring.
  • Debtors stated they did not have it when they filed for bankruptcy (since it was in the lake) so they did not list the ring.
  • At trial, wife admitted she threw the ring into the lake on Valentine’s Day because they believed it was cursed.

Bankruptcy Court Ruling:

  • Context matters in determining Debtors’ states of mind when failing to disclose the ring.
  • Timing -Debtors first met with a bankruptcy attorney in the Fall, nine days later they filed for bankruptcy.
  • Due to the dramatic nature of how the ring landed in the lake and the sentimental value – Court did not believe that an event that happened just one week prior to meeting with a bankruptcy lawyer and less than 2 months before filing – Wife’s explanation of such a short memory was hard to accept.
  • Chapter 7 Trustee hired scuba diver just weeks before the trial and the ring was found – the ring did exist.
  • Debtors were also found to have loss of memory in transferring another asset, a cabin, 6 months prior to filing.
  • Bankruptcy was denied.     Maybe the ring was cursed

Bankruptcy Assets Protection:

Filing bankruptcy is an excellent mechanism for honest debtors to get a fresh start.   Otherwise, debtors may never be able to recover from their debts.

However, during my free bankruptcy consultation with clients, I clearly outline what is required in a Debtor’s bankruptcy petition.

Call me today, I will take the time to meet with you, understand your situation, explain bankruptcy, and recommend if filing bankruptcy is right for you.