Chapter 7 Bankruptcy Engagement Ring Scandal

Chapter 7 Bankruptcy Engagement Ring Scandal

In one of the recent chapter 7 bankruptcy engagement ring scandals, a couple engaged in a relationship filed for bankruptcy. Their fiance gave them an engagement ring, but the debtor had not listed it on her bankruptcy petition. When the debtor’s trustee tried to turn the ring over to her fiance, he was unable to get the ring back. However, the courts ruled that the engagement ring was a conditional gift.

Major Problem For A Marriage

As the story goes, Moon gave his fiance an engagement ring before filing for bankruptcy. The ring had a condition: if the couple didn’t marry before filing for bankruptcy, the ring would have to be returned. However, this condition isn’t enforced in Chapter 7 Bankruptcy, so the ring remains with the woman who gave it to him. If she does file for bankruptcy, the ring will be seized and turned over to her fiance.

While many engaged New Jersey residents plan to hit the reset button on their finances before tying the knot, some are facing unmanageable debt. For those with unmanageable debt, this could pose a major problem for a marriage. However, it is important to note that, in some instances, the ring can be returned to the couple. However, the answer to this question will depend on a number of factors.