The Rhode Island bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Rhode Island. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Rhode Island, you also have the choice of using the federal exemption statutes instead of your Rhode Island exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Rhode Island you may also use certain federal exemptions in addition to your Rhode Island exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | None |
|
Insurance | Accident or sickness proceeds, avails or benefits Fraternal benefit society benefits Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors Temporary disability insurance | 27-18-24 27-25-18 27-4-12 28-41-32 |
Miscellaneous | Earnings of a minor child Property of a business partnership | 9-26-4(9) 7-12-36 |
Pensions | ERISA-qualified benefits Firefighters IRAs Police officers Public employees State & municipal employees | 9-26-4(11) 9-26-5 9-26-4(12) 9-26-5 28-17-4 36-10-34 |
Personal Property | Beds, bedding, furniture & family stores of a housekeeper, to $1000 total Bibles & books to $300 Body of deceased person Burial plot Clothing needed Consumer cooperative association holdings to $50 Debt secured by promissory note or bill of exchange | 9-26-4(3) 9-26-4(4) 9-26-3 9-26-4(5) 9-26-4(1) 7-8-25 9-26-4(7) |
Public Benefits | Aid to blind, aged, disabled, AFDC, general assistance State disability benefits Unemployment compensation Veterans’ disability or survivors’ death benefits Workers’ compensation | 40-6-14 28-41-32 28-44-58 30-7-9 28-33-27 |
Tools of Trade | Library of professional in practice Working tools to $500 | 9-26-4(2) 9-26-4(2) |
Wages | Earned but unpaid wages to $50 Earned but unpaid wages due military member on active duty Earned but unpaid wages due seaman Earned but unpaid wages if received welfare during year before filing bankruptcy Wages of spouse Wages paid by charitable organization to the poor | 9-26-4(8) ( C) 30-7-9 9-26-4(6) 9-26-4(8) (B) 9-26-4(9) 9-26-4(8) (A) |
Wild Card | None |
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For more information on filing bankruptcy in Rhode Island explore Rhode Island Bankruptcy Law.
