{"id":286873,"date":"2021-04-23T08:04:13","date_gmt":"2021-04-23T13:04:13","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/rhode-island-bankruptcy-exemptions-and-law.html"},"modified":"2026-08-19T09:55:28","modified_gmt":"2026-08-19T14:55:28","slug":"rhode-island-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/rhode-island-bankruptcy-exemptions-and-law.html","title":{"rendered":"Rhode Island Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Rhode Island Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Rhode Island<\/span> bankruptcy<\/span> exemptions<\/span> allow individuals filing for bankruptcy to protect specific real and personal property<\/span> from being liquidated by a court trustee to pay creditors. Under federal and state guidelines, qualifying debtors can safeguard critical assets such as home equity, motor vehicles<\/span>, retirement accounts<\/span>, and personal belongings up to established dollar limits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

For most people, filing bankruptcy<\/span> is a last-resort option. Not only does bankruptcy damage your credit, but it can also put your assets at risk. To help, Rhode Island<\/span> offers bankruptcy exemptions that help protect your real and personal property<\/span>.<\/p>\n

Those who file bankruptcy<\/span><\/a> may be in over their heads in debt, but that doesn\u2019t mean they don\u2019t own homes, motor vehicles<\/span>, and other personal property<\/span>. This can cause concern when filing Chapter 7 bankruptcy<\/span><\/a> for fear that the bankruptcy trustee will sell their assets to pay their secured and unsecured creditors. While this is certainly a possibility in any bankruptcy case<\/span>, both federal and state laws offer exemptions to people who file bankruptcy<\/span>.<\/p>\n

This article examines Rhode Island<\/span> bankruptcy<\/span> law<\/span>, including the available bankruptcy exemptions. It also covers the main types of bankruptcy and explains how you can qualify for a Chapter 7 or Chapter 13 <\/span>bankruptcy<\/span> case<\/span><\/a>.<\/p>\n

If you\u2019re considering filing bankruptcy<\/span> but aren\u2019t sure if it\u2019s the best option, contact a Rhode Island<\/span> bankruptcy<\/span> attorney<\/span><\/a>. They\u2019ll review your financial situation<\/span>, explain your options, and ensure you take full advantage of the exemptions available to you under Rhode Island<\/span> law.<\/p>\n

Types of Consumer Bankruptcy in Rhode Island<\/span><\/h2>\n

Federal law<\/span> recognizes two main types of personal bankruptcy: Chapter 7 and Chapter 13. The type of bankruptcy you file depends primarily on whether you want to eliminate your debt or restructure it. In a Chapter 7 <\/span>bankruptcy<\/span> case<\/span>, the bankruptcy court<\/span> discharges most or all of your debt.<\/p>\n

In a Chapter 13 case, the bankruptcy trustee works with you and your creditors to restructure your debt by negotiating a three-to-five-year repayment plan<\/span><\/a>. While the U.S. <\/span>Bankruptcy Court<\/span> may discharge some of your debt in a Chapter 13 bankruptcy<\/span>, this isn\u2019t always the case. It will depend on the type and amount of debt you include in your bankruptcy petition<\/span>.<\/p>\n

Understanding the differences between Chapter 7 and Chapter 13<\/a>, including the eligibility requirements for each, can make it easier to choose the right option for you. Let\u2019s take a closer look at each type.<\/p>\n

Chapter 7 <\/span>Bankruptcy<\/span> Case<\/span><\/h3>\n

In a Chapter 7 bankruptcy<\/span>, a trustee reviews your debts and assets. If everything\u2019s in order, they\u2019ll recommend that the bankruptcy judge discharge unsecured debts<\/span><\/a>. Some of your\u00a0secured debts<\/span>\u00a0may be discharged as well, but it depends on the specifics of your case. You may need to either surrender assets or keep the collateral and reaffirm your loan with the lender.<\/p>\n

Some of the more common types of debt discharged in a Chapter 7 bankruptcy<\/span><\/a> include:<\/p>\n