Legal Question in Bankruptcy in Ohio

My fiance is considering bankruptcy due to her credit card debt from her and cards she co-signed prior to our relationship. She has no assets other than clothing and very little inexpensive jewelry. My question pertains to whether her engagement ring is considered her asset or my asset. Since an engagement ring is a conditional gift could it be seized in bankruptcy? Or should I break it off with her and reclaim my property until after she gets her financial situation fixed.

Ohio has very low exemptions for jewelry 200 and $400. I paid approximately $6000 for it so it is well above those.


Asked on 10/28/09, 2:28 pm

1 Answer from Attorneys
David Michael Benson Benson Law Firm

All assets are includable in bankruptcy and even conditional gifts should be reported to the trustee. The shell game of taking things back and then giving them back again after a bankruptcy discharge always has the potential of blowing up in your face, maybe even landing someone in jail. So let's just assume that the engagement ring is her personal asset.

First of all, the exemption amount for jewelry is $1,350, not $400. You also have a $1,075 wildcard exemption. That would give you a total exemption of $2,425 to use against the ring. Second, the resale value of the ring is probably less than the $6,000 you paid for it. Third, there is no guarantee that the trustee will go after an engagement ring at all. Some just want to have it appraised before deciding whether it's worth pursuing. And finally, even if the trustee does insist that there is some value distributable to creditors, your fiancee can pony up the balance to keep the ring.

Hope that helps.

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Answered on 11/05/09, 10:10 am


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