There are two aspects to the answer here. The first is that if you know you are about to declare bankruptcy and you maneuver or scheme to sell your assets shortly before declaring, you could probably be charged with fraud.
The crucial factor is motive: if you are trying to hide your assets, you run a major risk and could even to jail.
If you had a medical emergency – say you had a life-threatening tumor and needed to pay the doctor – the court would probably be sympathetic. If you can’t afford food and sold your jewelry to eat, odds are you’d be okay. But, if you sold your jewelry simply because it is a valuable asset and then put the money in your wall safe, then you’d probably run the risk of criminal prosecution.
The basic principle here is to be open and honest, to seek good advice, and to do
nothing which could be perceived as dishonest or dishonorable.
Of course, we are not attorneys and this is NOT legal advice. If you are considering filing bankruptcy the best thing you can do is speak to a bankruptcy attorney in your area.
A quick search just revealed this amazing bankruptcy resource: the ultimate guide to California bankruptcy. The same website also has an There are probably differences between laws in AZ and CA, so again, do speak to a licensed attorney.
Selling your jewelry
Around 2011, during the price spike of metals, many people liquidated their jewelry. Of course, you can get significantly more money for jewelry by selling it instead of smelting it.
If you are looking to sell your jewelry in the Sedona area, or anywhere in Yavapai County (we also get clients in from Phoenix, AZ), please feel free to give us a call. Also, be sure to visit our page on jewelry consignment and Sedona Estate Sales.