Can I Keep My Jewelry If I File Bankruptcy?

Many individuals inquire as to whether they can keep their jewelry if they file for Chapter 7 bankruptcy in Kansas City.  The answer depends on how much your jewelry is worth.  In Kansas an individual is entitled to a $1,000 exemption for jewelry.  If you are married and filing bankruptcy jointly in Kansas you are entitled to a total of $2,000 in jewelry as exempt.  See K.S.A. 60-2304(b).  http://kansasstatutes.lesterama.org/Chapter_60/Article_23/60-2304.html  For example, if you are married in Kansas and the husband owns a wedding band valued at $300 and the wife owns an engagement ringt valued at $1,300 you would be able to keep both items, as you could combine your exemptions for a $1,600 exemption out of $2,000 allowed.

In Missouri an individual is entitled to a $1,500 exemption for a wedding ring and an additional $500 exemption for other jewelry.  If you are married and filing jointly in Missouri you are entitled to a total exemption of $3,000 for wedding rings and an additional $1,000 total exemption for other jewelry.  See R.S. Mo. 513.430.1(2)  http://www.moga.mo.gov/statutes/c500-599/5130000430.htm  For example, if you are married and the husband has a wedding band valued at $800 and the wife has an engagement ring valued at $2,000 then you would be able to keep both items, as you would still be under the $3,000 wedding ring exemption.  You would also be entitled to exempt a combined total of $1,000 for any other jewelry pieces you may have.

Your jewelry should be valued at its current fair market value, not the purchase price.  If you are considering bankruptcy in Kansas City and are concerned about the value of your jewelry, I suggest you have it appraised or check the sale price of the item from a retailer.  For more information please visit my website at http://www.thesmalleylawfirm.com

Do You Have a Will?

I know this is a Kansas City bankruptcy blog, but I find this topic so significant that it needs to be discussed here.  In conversations with family, friends and clients over the last few months it has become apparent that many individuals have never had a will drafted, even if they have spouses and/or children.  If you own a home, a car, or have a bank account you should have a will.

Many people are unaware that if you do not have a will most of your assets will pass to your heirs through a statutory process known as "intestate succession".  For example, in Kansas if you are married with children and do not have a will, half of your property will pass to your spouse and the other half will pass to your children.  If you do not have a living spouse or children, Kansas law would pass the property to other more remote relatives.  If you have no heirs in Kansas, your property would revert to the state.  Also, without a will in Kansas, the Court will decide who administers your estate and who would serve as guardian of your minor children.  For more information I suggest you review the Kansas Bar Association's webpage on wills at:  http://www.ksbar.org/public/public_resources/pamphlets/important_will.shtml

I have significant experience drafting wills and would be more than happy to meet with you for a free initial consultation.  I can ensure that your assets go where you want them to go and that any children you may have are taken care of by your selected guardian.  I am able to draft wills in both Kansas and Missouri.  Even if you have a will, I suggest it be reviewed if there have been changes in your family, finances, state of residence, or your intentions.  For more information please visit my website at http://www.thesmalleylawfirm.com

Student Loan Discrimination and Bankruptcy

After my previous blog post on employment discrimination and bankruptcy I have had several inquiries as to whether filing bankruptcy in Kansas City will prevent an individual from obtaining student loans.  The simple answer is "no".

Bankruptcy Code Section 525(c) mandates that any government unit that administers student grant or loan programs, or any person that has a business that includes making student loans that are guaranteed or insured under a student loan program, "may not deny a student grant, loan, loan guarantee or loan insurance" to a person who has filed for bankruptcy, or to someone associated with a person who has filed for bankruptcy, solely because that person either filed for bankruptcy, or is insolvent.  The text of this code section can be found here:  http://codes.lp.findlaw.com/uscode/11/5/II/525

Therefore, the Bankruptcy Code prohibits discrimination by government or private lenders in issuing student loans based solely upon you or anyone you are associated with filing for bankruptcy or being insolvent.  However, you may still be denied a student loan based on some other reason.  For additional information please visit my website at http://www.thesmalleylawfirm.com  I, Kansas City bankruptcy attorney Cary Smalley can also be reached at (913) 601-3549 or cary@thesmalleylawfirm.com if you have legal questions.  I offer a free initial consultation.