Renata Klein Is on the Verge of Bankruptcy, Could She Lose Her Expensive Wedding Ring Too?

Advisor September 5, 2019

Laura Dern has been killing it as Renata Klein on the latest HBO show that has created some undeniable buzz. Could her character be on the verge of losing her wedding band?

We’ll get to that, but in addition to being highly entertaining, Big Little Lies also paints an accurate picture of real-life happenings, with the show’s characters facing the ups and downs most of us have had to or are still dealing with.

The Big Little Lies cast does a good job painting an accurate picture of happenings IRL

A Destructive Secret

Well, not issues as huge as murder of course, but we’ve most certainly kept secrets from our significant others, no? And who hasn’t found themselves in a tight spot financially at some point their life?

Speaking of financial tough spots, Renata just has the best meltdowns. Social media has been awash with memes and GIFs of the character overreacting due to her financial woes, making her a fan favorite.

Gordon, Renata’s husband, is picked up for fraud, and his wrongdoings could ultimately cripple his family financially. For someone who has been leading a glamorous Hollywood lifestyle, going broke isn’t an eventuality they are willing to accept — especially not Renata.

The ensuing bankruptcy proceedings make everything the Kleins own fair game, including their $20-million mansion and Renata’s wedding band, not forgetting the Tesla they own. So what really does it mean when you file for bankruptcy?

Gordon put his family in a hole

Bankruptcy

Going by John Colwell’s wealth of knowledge (Colwell is a bankruptcy lawyer based in San Diego), bankruptcy falls into either category – Chapter 7 or Chapter 13.

The most popular form is the former, and most people choose it as a better option. The proceedings take roughly four months, and the whole thing is also less expensive than its counterpart. Going the Chapter 7 way means that ultimately, you won’t have to repay some of your creditors.

For the process to run its complete course, Colwell advises that the debtor must disclose their assets in totality for trustee review. You may think that by assets he’s only referring to your house and your car, but it’s much more than that. Furniture, pets, jewelry, clothing, anything valuable that you own; you should disclose it all.

Do you now get why Renata was not in the trustee’s good books? She didn’t disclose the Tesla, neither did she come clean about her wedding ring. During bankruptcy proceedings, it is common practice to sell off some of the valuable assets the debtor owns to try and settle some of their debts.

Renata was definitely not in the trustee’s good books

Debts, on the other hand, are classified into secured, unsecured, and alimony. In Chapter 7, unsecured debt is discharged (everything apart from student loans), providing the debtor a clean slate. However, they still have to cater for secured and priority debts not paid for by their assets.

Chapter 13 isn’t as lenient as its counterpart, mostly because it doesn’t just discharge debt. Instead, the proceedings work towards establishing an elaborate plan on how the debtor is going to pay everything they owe.

As Colwell readily shares, filing for bankruptcy has become much more common in recent times, especially since the stigma around it has significantly reduced. Although no one wants to find themselves in such a tight spot, the lawyer advises that it never hurts to seek an attorney’s help.