Should I Disclose My Jewelry and Valuables in Bankruptcy?

When you petition yourself as a debtor in a bankruptcy case, giving the Kentucky Bankruptcy Court full financial disclosure is not optional; it is required. You may have so many personal items, including countless pieces of jewelry and small trinkets, that it is difficult to take inventory of every last one. What’s more, you may assume that certain things hold more sentimental meaning than monetary value, and that the court will not care to know about them much. However, you may be sorely mistaken with these takes. Without further ado, please continue reading to learn how to disclose your jewelry and valuables in your bankruptcy paperwork and how an experienced Louisville, Kentucky consumer bankruptcy attorney at Schwartz Bankruptcy Law Center can help you approach this correctly. 

How should I disclose my jewelry and valuables in my bankruptcy paperwork?

Simply put, your personal property must be listed on your Schedule A/B: Property. This may include your jewelry, watches, precious metals, collectibles, art, and antiques, among other valuables under your current ownership. 

To supplement these listings, you must also disclose a reasonable estimate of their fair market values. Importantly, this is likely a different monetary value than what you originally paid for it or what it would cost being brand new in a retail store.

Then, more for your benefit, you may disclose your jewelry and valuables on your Schedule C: The Property You Claim as Exempt. This is where you may choose either state or federal bankruptcy exemptions to protect these items from liquidation by your trustee.

What happens if I forget to list a piece of jewelry or a valuable personal item?

Before working on your Schedule A/B, we strongly encourage you to get your jewelry and valuable personal items appraised by a professional. This is because your appointed bankruptcy trustee may follow up with an appraiser or other reputable source anyway. And if you are found to have significantly undervalued your property, you may make yourself vulnerable to accusations of acting in bad faith, committing bankruptcy fraud, etc.

Further, your Schedule C underlines the importance of understanding the true value of your possessions. This is because if you overvalue these items, you may mistakenly indicate to your trustee that they exceed the state and federal bankruptcy exemption requirements. And so, you may unnecessarily part ways with them, which may be especially devastating if they equally hold sentimental value to you and your family.

There is no shame in asking for help, especially when you are dealing with something as serious as a legal matter that could affect your physical, emotional, and financial well-being. So please retain legal assistance from a skilled Louisville, Kentucky consumer bankruptcy attorney from Schwartz Bankruptcy Law Center. We will happily lend a hand.