Property gifted to you is property of the bankruptcy estate. An engagement ring, jewelry, family heirlooms, are all items that are included in a bankruptcy estate. The mere fact that you received something by gift does not alter your ownership interest. You simply own it whether you paid for it or not. Can you give it back? Yes, but that transfer can be avoided in bankruptcy, which means in bankruptcy the person appointed to oversee your case can recover the jewelry that you gave back. The bankruptcy estate includes all property that a person may have sentimental or emotional attachment and that attachment can be so strong that a person opts not to file for bankruptcy.