Discharging a debt during bankruptcy?

Issue by John H: Discharging a financial debt throughout bankruptcy?
My wife is filing for bankruptcy and 1 of our creditor's is Kay Jewelers. We purchased our wedding ceremony rings via them back in 2008. We acquired a letter in the mail today stating that they could have a non-dischargeability lead to of action towards us if we really don't flip our rings above, which we actually do not want to have to do. I know that it would seem like the smart factor to do and we cannot really find the money for to pay out off the credit card debt. Is there any choice to supplying the rings back or having to pay the debt?
Thank you all for answering so speedily. First, I am not on any of her loans/ debts so it wasn't truly recommended that I file as effectively. The only factor I have in my title is my college student loans and our car (which the particular person who assisted us file our paperwork said we wouldn't will need to fear about because the title is in my name). With that mentioned, while we were filling out our paperwork, there is a part that you get to place items that you would like to have exempt from the bankruptcy i.e. jewellery, garments, electonics... and you're authorized up to a particular appeal for every single item. Our rings fell way below the limit so we had been advised that we could retain them. Lastly, and sadly, it was a secured loan so they are declaring that the rings are collateral and they have the right to either consider them back or have us pay it back.


Finest answer:

Reply by anonimitie
Only the clear of having to pay for them.

Discharging the financial debt is good but, you will still have to flip more than unpaid assets - your wedding ceremony rings for instance. Bankruptcy doesn't suggest you get to preserve stuff for free of charge. For example, an unpaid for car will have to be returned, as well. The only exception is unsecured credit card debt like what you bought with a credit score card. The decide may still need you to promote some of individuals property.

It is a depressing prospect and I sympathize but, it's not fair to the jeweler that you get to retain the jewels.


After edit:
Funding them through Kay had to imply that it was a secured mortgage. They are experts and have been in this situation just before. I do not know if the court paperwork you've filled-in will above experience your hypothecation of the rings to Kay.

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