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Engagement Ring

Hi there. In 2006, I purchased my wife`s engagement ring & wedding band on a credit for approx $2,000. I had paid off the card but have over extended on my credit again. My overall debt is becoming unmanageable and I am contemplating bankruptcy.

I know one question a trustee asks is `Have you given a gift over $500?` I am wondering if my wife`s rings would consititute a gift. If so, would a trustee make me pay them the value of the rings in order to distribute to creditors? Thank you in advance for your assistance!

One Response to “Engagement Ring”

Barton Goth GCO Bankruptcy Trustees said...

You are best to discuss this directly with a local trustee as it is one of those scenarios that can be argued either way so the trustee must exercise some professional discretion.

However, I don’t think you have to worry significantly, even if it is listed as a gift of property over $500 there is very little likelihood that your trustee or your creditors will take any action with respect to the engagement ring.