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Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
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Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
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This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
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I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
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I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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- posted: Jan. 03, 2025
Though filing for a debt discharge through Chapter 7 bankruptcy can provide life-changing financial relief, it can also be an emotional process. One element of the proceeding is that certain assets of your might be liquidated by the trustee in order to repay creditors. Though certain assets and personal items are protected from liquidation, potentially valuable possessions, such as jewelry, could be taken and sold. If you’re concerned about losing an expensive piece of jewelry in a bankruptcy, you should understand the applicable rules prior to filing.
In New Jersey, as in other states, bankruptcy laws allow for certain property exemptions—protections that enable filers to retain specific assets during liquidation. You can choose to use either the federal exemption system or New Jersey’s state exemptions. Both systems provide a way to protect some of your assets, but they differ in what they allow. If you choose to use the federal exemptions, the current cap for jewelry protection is $1,875 (as of the most recent adjustments). This means you can exempt up to $1,875 worth of jewelry from liquidation during the bankruptcy process. For a couple filing for bankruptcy, this amount is doubled.
How might this be applied if you are filing individually and own a ring worth $4,000? To qualify for the exemption, the value of your jewelry must be appraised. This value is based on the fair market price, not the original purchase price or sentimental value. The trustee could take possession of the ring, sell it and pay you the $1,875 exemption amount. The remaining proceeds would be used to pay your creditors. However, if the ring has extraordinary sentimental value to you, the trustee might offer you the option to buy back the piece with a $2,125 payment. You should also remember that the $1,875 exemption is for all of your jewelry, not each particular item.
If the federal exemptions are chosen, you may use a “wildcard” exemption to protect additional assets, including jewelry. This allows an individual filing for Chapter 7 bankruptcy to take an additional $1,475 exemption that can be used for any property, including jewelry. Any unused portion of the federal homestead exemption, which covers equity in your residence up to $13,950 for an individual and $27,900 for a married couple, might also be transferred to help keep jewelry and other household items.
The Law Offices of James C. Zimmermann represents New Jersey clients in Chapter 7 bankruptcy matters. If you’re struggling with serious debt and have questions about exempted property or anything else related to the bankruptcy process, please call 973-764-1633 or contact us online. We have locations in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.
