Halfway through CH13 plan - engagement ring question

[PurplePanda]

I am about halfway through my 3-year CH13 plan (not 100%). When I filed, I was engaged. My engagement ring was listed as an asset and the value was exempt. The relationship recently ended and my ex-fiance told me he didn't want the ring back and that I can do whatever I want with it. It was purchased at Costco and I actually have the option to return it to the store for a merchandise credit only, not a refund. Am I correct in thinking that the ring is an asset of my BK case and is not legally my property to dispose of? Or, may I return it for the merchandise credit without it causing an issue in my BK?

Thanks for your help.

[justbroke]

I would go back to my Chapter 13 bankruptcy attorney because it depends on what your Chapter 13 plan did to property of the estate when it was confirmed. Additionally, Chapter 13s are special because you get to keep all your property. So long as the unsecured creditors get as much as they would have in a hypothetical Chapter 7, then you are okay to keep assets. This is known as the best interest of creditors test (or Chapter 7 liquidation test).

Another factor may be how your district treats the conversion of an exempt asset into a non-exempt asset.

Purchasing food and necessities may be okay. But, I'd rather you ask your attorney for this type of advice.

[PurplePanda]

I would go back to my Chapter 13 bankruptcy attorney because it depends on what your Chapter 13 plan did to property of the estate when it was confirmed. Additionally, Chapter 13s are special because you get to keep all your property. So long as the unsecured creditors get as much as they would have in a hypothetical Chapter 7, then you are okay to keep assets. This is known as the best interest of creditors test (or Chapter 7 liquidation test).

Another factor may be how your district treats the conversion of an exempt asset into a non-exempt asset.

Purchasing food and necessities may be okay. But, I'd rather you ask your attorney for this type of advice.

Thanks, justbroke. I will reach out to my attorney's office. There shouldn't be a "best interest of the creditors" issue because I have already surpassed that mark by far. My secured creditors were paid in full as of a couple months ago and at the rate I am going, my unsecured creditors may end up begin paid 100% or close to it. I have been extremely busy with work and have been compensated well for it. My plan was confirmed with unsecured creditors receiving about 3% and they have easily received 20-25% at this point.