Again...there are so many people on this thread talking so much about bankruptcy when they clearly know nothing about it. And I mean nothing. I know a lot of people here are always looking for yet another reason to talk shit about Shanann (and I think she was awful too btw), but some of y'all are reaching too far because you're literally always looking for yet another petty little thing to pick at SW about.
My husband and I filed bankruptcy a few years ago, I know a lot about it. We filed Chapter 13 (which meant we got on a strict repayment plan to repay our debts in 5 years) vs. Chapter 7 (which does not involve a repayment plan), so there is a difference for sure. But we discussed both with our BK attorney, and a lot of the paperwork and hearings are the same.
The Watts listing SW's ring as being "valued" at $1k does NOT necessarily mean she lied about the ring being $12k when it was purchased.
The Watts listing the family dog at being "valued" at $5 does NOT mean they paid that for him. You have to list animals that you own on your BK documents. You have to list EVERYTHING that you own.
Our BK lawyer told us to put down the value of our 2 (free, mutt) dogs as $10. His assistant, who had already showed us pics of her shih tzus in her office, said "It always breaks my heart, seeing clients have to put their pets' values down like that. If y'all are like me, your dogs are worth more than a million dollars!"
When you file bankruptcy, if you have over a certain amount in assets, those assets can and WILL be sold, and the proceeds will go toward your debts.
There is a certain amount in assets that you can possess before that happens, however. You want to avoid going over that number with the things you want to keep (like your wedding rings, your furniture...your DOG...).
You don't lie, necessarily, but our BK lawyer said, "If you needed to sell this item today, at a pawn shop or something, how much do you think you would get for it?" And that's how you value your items in your BK listing. (and if you're curious, if you take a $12k ring from the mall to a pawn shop the next day, you MIGHT get 1/4 of that for it. MAYBE)
If the bankruptcy trustee thinks something is "funny," they can investigate further. But for the average family, they won't/don't, as long as it isn't a TON of assets.