Rhode Island Bankruptcy Law
Bankruptcy Courts in Rhode Island
If you live in Rhode Island and are considering bankruptcy, your case will be handled in the U.S. Bankruptcy Court for the District of Rhode Island, located in Providence.
The Rhode Island bankruptcy court applies federal bankruptcy law, with appeals reviewed by the U.S. Court of Appeals for the First Circuit, which also covers Massachusetts, Maine, New Hampshire, and Puerto Rico. The court has its own local rules and procedures that supplement the federal rules, so it’s helpful to work with a bankruptcy attorney who understands the requirements for this district.
Where You File Depends on Where You Live
Rhode Island has only one federal bankruptcy district, and all counties file in Providence. A bankruptcy attorney can confirm your filing requirements and ensure your case complies with all district rules.
Bankruptcy Filing Trends in Rhode Island
Rhode Island sees several thousand consumer bankruptcy filings each year. Chapter 7 cases, which are used to erase unsecured debts like credit cards and medical bills, make up most filings. Chapter 13 repayment plans are also common, especially among homeowners who need time to catch up on mortgage arrears or stop foreclosure.
Rhode Island Exemptions — What You Can Keep
Bankruptcy doesn’t mean losing everything you own. Exemption laws protect property that you need to live and work, such as your home, car, household goods, and retirement funds. Exempt property is protected by law and cannot be taken or sold to pay creditors.
Rhode Island allows filers to choose between state and federal exemptions. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own. Choosing to use state or federal exemptions depends on your circumstances, so speaking with an attorney can help you decide which option provides greater protection.
Common Rhode Island State Exemptions
| Property Type | Amount Protected (Individual / Joint) |
|---|---|
| Cooperative association membership holdings | Up to $50 |
| Partnership property | Fully exempt |
| Wearing apparel | 100% |
| Trade implements (tools of trade) | $2,000 / $4,000 |
| Professional library | Fully exempt |
| Household furniture and goods | $9,600 / $19,200 |
| Family books | $300 / $600 |
| Burial plot | Fully exempt |
| Wages payable from charity fund | $50 / $100 |
| Wages of debtor on public assistance | $50 / $100 |
| Wages and salaries due to debtor (general) | $50 / $100 |
| Individual retirement accounts | Fully exempt |
| Pensions, annuities, and retirement plans | Fully exempt |
| Motor vehicle | $12,000 / $24,000 |
| Jewelry | $2,000 / $4,000 |
| Tuition program assets | Fully exempt |
| Wildcard (any property) | $6,500 / $13,000 |
| Real property with casino-marker-secured debts | Unlimited |
| Bank deposits | $500 / $1,000 |
| Homestead (principal residence) | $500,000 (individual & joint) |
| Police and fireman pensions | Fully exempt |
| Insurance proceeds (various categories) | Often fully exempt |
| Workers’ compensation | 100% |
| Temporary disability benefits | 100% |
| Unemployment compensation | 100% |
| Militia wages | Fully exempt |
| Public employee retirement benefits | Fully exempt |
| Public assistance benefits | 100% |
| Tenancy by the entirety | Exempt as to individual creditors |
Common Federal Bankruptcy Exemptions
| Property Type | Federal Amount (Individual / Joint) |
|---|---|
| Homestead | $31,575 / $63,150 |
| Motor vehicle | $5,025 / $10,050 |
| Household goods (per item limit $800) | $16,850 / $33,700 |
| Jewelry | $2,125 / $4,250 |
| Wildcard | $1,675 + up to $15,800 unused homestead |
| Tools of trade | $3,175 / $6,350 |
| Life insurance cash value | $16,850 / $33,700 |
| Health aids | 100% |
| Social Security, unemployment, welfare | 100% |
| Veterans’ benefits | 100% |
| Alimony/child support (to extent needed) | 100% |
| Pensions & retirement accounts | 100% |
| Personal injury claims | $31,575 / $63,150 |
| Wrongful death claims | Amount needed for support |
| Lost earnings compensation | Amount needed for support |
| Tenancy by the entirety | Exempt under federal law |
Choosing between state or federal exemptions can significantly affect what property you can keep. A bankruptcy attorney can help determine which option best protects your home, car, and personal assets.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit counselling course from an approved provider. After filing, you must complete a debtor education course to receive a discharge.
Means test. To qualify for Chapter 7, your income must be below Rhode Island’s median or pass a means-test calculation.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you can’t pay all at once, you can request to pay in installments or apply for a waiver.
Meeting of Creditors. About 30 days after filing, you will attend a brief “341 meeting.” This meeting is not held before a judge. A bankruptcy trustee will verify your identity and ask a few basic questions about your finances and paperwork.
In Rhode Island, meetings are typically held virtually or in person in Providence, depending on your case type and trustee assignment.
Local rules and forms. The District of Rhode Island has local rules that supplement the federal rules. A bankruptcy attorney can help ensure your documents comply with all requirements.
What This Means for You
Filing for bankruptcy in Oregon can immediately stop wage garnishments, creditor lawsuits, foreclosure activity, and vehicle repossessions. Most filers keep their homes, vehicles, personal belongings, and retirement accounts.
Because Rhode Island allows the use of either state or federal exemptions, and because each set protects different types of property, it’s important to work with a bankruptcy attorney before filing.
A bankruptcy attorney can help you:
- Decide between Chapter 7 and Chapter 13
- Choose exemptions that best protect your property
- Complete credit-counseling and education requirements
- File accurate paperwork under Rhode Island’s local rules
With the right guidance, bankruptcy can give you a fresh start and a clear path toward financial stability.
