Contemporary Business Law 8th Edition by Henry Cheeseman

تمرين 5

Bankruptcy Estate Dr. Morris Lebovitz and Kerrye Hill Lebovitz, husband and wife, were residents of the state of Tennessee. Dr. Lebovitz filed for bankruptcy protection as a result of illness. Mrs. Lebovitz (Debtor) filed for bank­ruptcy because she had co-signed on a large loan with Dr. Lebovitz. The Debtor is the owner of the following pieces of jewelry: a Tiffany 5-carat diamond engagement ring (pur­chase price $40,000-$50,000), a pair of diamond stud ear­rings of approximately 1 carat each, a diamond drop necklace of approximately 1 carat, and a Cartier watch. All of these items were gifts from Dr. Lebovitz.
Tennessee opted out of the federal bankruptcy exemption provisions and adopted its own bankruptcy exemption provi­sions. Tennessee does not provide for an exemption for jewelry. Tennessee does provide for an exemption for "necessary and proper wearing apparel." Debtor claimed that her jewelry was necessary and proper wearing apparel and was therefore exempt property from the bankruptcy estate. The bankruptcy trustee filed an objection to the claim of exemption, arguing that the Debtor's jewelry does not qualify for an exemption and should be part of the bankruptcy estate. Does Debtor's jewelry qualify as necessary and proper wearing apparel, and should it thus be exempt property from the bankruptcy estate? In re Lebovitz , 344 B.R. 556, Web 2006 Bankr. Lexis 1044 (United States Bankruptcy Court for the Western District of Tennessee)