December 27th, 2007 by Questions
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”
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December 28, 2007 at 10:09 am, 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.