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Rhode Island Bankruptcy Laws
Eighty-five percent of the bankruptcy filings in Rhode Island are Chapter 7 filings and so knowing the exemptions available is very important. In Rhode Island, you are allowed to choose between the federal and state exemptions lists, but you may only use one list when you decide to file. The Rhode Island exemptions list is extremely generous:
Homestead
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$300,000 occupied or intended to be occupied as primary residence. |
Personal Property |
Consumer cooperative association holdings up to $50; all motor vehicles up to $12,000 total; clothing needed; furniture, beds and bedding, household goods and supplies up to $9,600 total; jewelry up to $2,000 total; books up to $300 total; burial plot; debt owed to you which is secured by a promissory note or bill of exchange; and prepaid tuition accounts. |
Wages |
Earned but unpaid wages up to $50; wages of spouse; earned but unpaid wages of a seaman, or if you have received welfare during the year prior to filing for bankruptcy; wages paid to the poor by a charitable organization; earnings of a minor child; earned but unpaid wages of a military member on active duty. |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up the $1,095,000 per person; ERISA-qualified benefits; IRAs and Roth IRAs; police officers and firefighters; private employees; state and municipal employees. |
Public Benefits |
Crime victim's compensation; workers' compensation; state disability benefits; unemployment compensation; veterans' disability or survivor benefits; family assistance benefits; general assistance; aid to blind, aged, and disabled. |
Tools of the Trade |
Working tools up to $1,500; library of a professional in practice. |
Insurance |
Life insurance proceeds if policy prohibits use to pay creditors; accident or illness proceeds, benefits, dividends, interest, loan, cash, or surrender value; fraternal benefit society benefits; temporary disability insurance. |
Miscellaneous |
Business partnership property. |
Wild Card |
$5,000 |
Now that you have decided which bankruptcy code fits your situation best, what exemptions list works for you and have completed any credit counseling necessary, you can begin to file your petition for bankruptcy with the court. A meeting will likely be arranged by the bankruptcy trustee, so that your creditors can be informed and ask any questions they may have about payment plans and other applicable concerns. If your petition for bankruptcy is then accepted, you will be able to begin life without debt (Chapter 7) or start working toward being free from debt within just a few years (Chapter 13).
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