A few questions about my situation

[bebo]

I'm planning to file ch. 7 in june.

My question is I put 1,000 down for my wedding reception is that something the trustee can go after? Also, what about the engagement ring, is it a gift they can go after or can I use an exemption to protect it. I'm in Colorado if that helps. Thanks for any input.

[jal1129]

The Colorado exemption for jewelry is $1000. How much is your ring worth? Remember this is resale, not retail value or insurance value.

Not sure on the reception deposit. Colorado does'nt have a wildcard. When did you put the deposit down and how did you pay for it (ex.- with a cc?). That will probably be a factor.

[JRScott]

I had to say this but take it to a pawn shop and see what they'd offer you for it. Whatever they offer is the value of the ring, its the value you could get immediately for it as jal says, not its insurance or cost value. I'd then use the pawn shop offer as the value. Just tell them no thanks , not interested in selling it after they make you an offer.

[bebo]

I paid cash. Is it looked upon as a preferential payment?

[DeadManCrawling]

If it the reception was paid with cash, how can that be considered preferential payment?

Curious about this.

My understanding was that for a payment to be considered preferential it had to be:

1. To a CREDITOR

2. Payment larger than the average history of payments to that particular creditor.

If it was paid in cash, there IS no creditor, as no debt was ever incurred, and no credit ever used.

Additionally, the fee ($1,000.00) passes the test of "consideration". That is, they didn't sell a 50k diamond to their brother (an insider) for $100.00.

Also, there IS no history of payment on a one time fee like this.

Can anyone clarify?


Seems like this would be beyond the scope of all the laws I am aware of.

-dmc

[jal1129]

How long ago did you pay this deposit and is there a paper trail? Is there a recent $1000 withdrawl from your bank account or a check wrote out to cash recently that might show up? If there is no paper trail I am not sure it would even come up.

[SinkingFast]

Actually it's payments totaling $600 or more within 90 days prior to filing, and/or payments to Insiders (family, friends, close business associates) within a year prior to filing.

That doesn't count normal course of business type things like utilities bills, rent, or payments to Secureds.

I'm kinda like Jal,............ If there's a withdrawal from your bank acct or a check that floated thru your bank acct, then there's a paper trail. You may be asked where the money went. If there's no paper trail, the subject may never come up.

Whether or not the Trustee could/would go after the money is gonna depend on when the deposit was made in relation to filing. More than 90 days is better. And the luck of the draw. If you get an understanding Trustee or a "Letter of the Law" Trustee.

Besides pawn shops, I'd suggest you try jewelers too for a value on the ring. Ask what they would pay you, cash, on the spot. Try to get some of the values in writing to substantiate your value. If it's a more traditional type engagement ring with a larger center stone, you'll get some value for the main diamond/gemstone. The rest of the ring will be valued at scrap price.