Rhode Island bankruptcy laws outline the assets protected during bankruptcy and the procedures in place for those who need to file bankruptcy. Before filling, make sure you understand these laws and how they affect your family.

Bankruptcy Exemptions

Those filing for bankruptcy in Rhode Island must choose between two exemption schemes, the state plan and the federal plan. Under the federal plan, bankrupt individuals may keep:

• Up to $20,200 for a home
• Life insurance payments if you depended on the deceased
• Up to $10,775 for life insurance policy with a loan value
• Alimony and child support
• ERISA qualified benefits, retirement benefits and pensions
• Up to $500 per item for a total of $10,775 for household goods
• Unmatured life insurance contract
• Up to $1,350 for jewelry
• Health aids
• Lost earnings payments
• Up to $3,225 for a vehicle
• Up to $20,200 for personal injury payments
• Wrongful death, crime victim’s compensation, public assistance Social Security, unemployment, and veterans’ benefits payments
• Up to $20,200 for tools of the trade
• A wild card exemption for $1,075 of any property and $10,125 of the unused homestead exemption

Under the Rhode Island bankruptcy scheme, you may keep:

• Up to $300,000 for a homestead, provided it was not purchased within the past 1,215 days, in which case the exemption is $125,000.
• Clothing
• Up to $1,200 for tools of the trade
• Up to $300 for family books
• Burial lot
• Up to $9,600 for household goods and furniture
• Wages from charitable corporation
• Debts secured by bills of exchange or promissory notes
• Up to $12,000 for a motor vehicle
• Certain retirement accounts or annuities
• Up to $2,000 for jewelry
• Life, accident, and sickness insurance proceeds
• Tuition savings programs
• Workers compensation
• Employees’ trust interest
• Disability benefits
• Public assistance and unemployment

A bankruptcy attorney can help you figure out which of the two is the most beneficial for your unique situation.

Chapter 7 Bankruptcy Information

If you are looking to file bankruptcy in an attempt to clear all of your debts and start over, try to file Chapter 7. This form of bankruptcy requires you to pass a means test, but if you qualify, you will be able to wipe out most of your debts after selling your assets.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy works well for those who want to keep more of their assets and attempt to repay their debts. This form requires a debt repayment plan covering a three to five year period. After that time, remaining debts will be erased and non-exempt assets sold.