If you are filing bankruptcy, you already know that you will need to notify the bankruptcy court of all debts and all assets. One asset that some bankruptcy filers aren’t sure how to approach is jewelry. When working with your bankruptcy attorney to fill out your bankruptcy paperwork, you will need to not only identify jewelry, but provide an estimated value for each piece.
Listing Property During Bankruptcy:
Filing bankruptcy is a legal process with specific requirements. Bankruptcy petitioners will notice when they begin going through the process with their attorney that they are required to list all their personal property in the paperwork. When referring to bankruptcy, “personal property” refers to all assets you may own, including houses, vehicles, cash, checking and savings accounts, furniture, clothing, jewelry, etc. Each asset will need to have a value listed. Determining the value of an asset is sometimes simple, but in some cases, depending on the asset, the purchase history, etc. the bankruptcy petitioner may find themselves at a loss as to how to come up with a valid value for the bankruptcy court.
What is the Value of Property During Bankruptcy?
In most cases, bankruptcy petitioners can use tax value for their home, NADA value for their cars, Goodwill Store pricing/values for furniture, household goods, and clothing. But for jewelry, the process is a little different. It’s not normal to find fine jewelry at a garage sale or yard sale. So providing a “value” for the court based on yard sale or garage sale pricing doesn’t work. So how should a bankruptcy petitioner find an acceptable “value” for their rings, necklaces, bracelets, wedding bands, watches, etc.?
Types of “Value” to Assign to Fine Jewelry:
When it comes to assigning a value to fine jewelry there are several different “values” to consider working with and the trick is determining which is most appropriate for your piece.
- Market Value
- Retail Replacement Value
- Estate Value
- Liquidation Value
For the purposes of bankruptcy, the bankruptcy code requires us to use the replacement value meaning the price a reseller of used jewelry would charge for property of that kind, considering the age and condition of the jewelry at the time is is appraised. In other words, we look at pawn shop retail pricing. We have a local jeweler who does appraisals for us at no charge or a very nominal fee, if needed.
There is no shame in turning to bankruptcy to seek a discharge of debt when unintended circumstances leave you struggling to provide for your family. Are you out of choices? Do you need help releasing your family from the chains of debt? Don’t hesitate to call Kenneth C. Rannick P.C., Tennessee and Georgia bankruptcy attorney. We help good people through bad times.