Rhode Island Bankruptcy Exemptions
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UPDATED: Oct 21, 2024
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UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
| Assets | Exemption | State Statutes |
|---|---|---|
| Homestead | $500,000 in land & buildings you occupy or intend to occupy as a principal residence (husband & wife may not double). | R.I. Gen. Laws § 9-26-4.1 |
| Tenancy by Entirety | Tenancy of the entireties property is shielded from the reach of creditors until the tenancy is dissolved or the debtor spouse survives the non-debtor spouse, but, creditors not only may attach property that is owned as tenants by the entirety, but also may “sell the contingent future expectancy interest which the attachment entails (if anyone can be persuaded to purchase it). | In re Furkes, 65 B.R. 232, 236 (D.R.I.1986); see also In re Bois, 191 B.R. 279, 280 (Bankr.D.R.I.1996); In re Ryan, 282 B.R. 742 (D.R.I 2002) |
| Insurance | Accident or sickness proceeds, avails, or benefits. | R.I. Gen. Laws § 27-18-24 |
| Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors. | R.I. Gen. Laws § 27-4-12 | |
| Temporary disability insurance. | R.I. Gen. Laws § 28-41-32 | |
| Fraternal benefit society benefits. | R.I. Gen. Laws § 27-25-18 | |
| Misc. | Property of business partnership. | R.I. Gen. Laws § 7-12-36 |
| Earnings of a minor child. | R.I. Gen. Laws § 9-26-4 (9) | |
| Pensions & Retirement Savings | ERISA-qualified benefits. | R.I. Gen. Laws § 9-26-4 (12) |
| Firefighters. | R.I. Gen. Laws § 9-26-5 | |
| IRAs (all types). | R.I. Gen. Laws § 9-26-4 (11) | |
| Police officers. | R.I. Gen. Laws § 9-26-5 | |
| Private employees. | R.I. Gen. Laws § 28-17-4 | |
| State & municipal employees. | R.I. Gen. Laws § 36-10-34 | |
| Personal Property | Beds, bedding, furniture, household goods, & supplies, to $9,600 total (husband & wife may not double). | R.I. Gen. Laws § 9-26-4 (3) In re Petrozella, 247 B.R. 591 (R.I. 2000) |
| Bibles and books to $300. | R.I. Gen. Laws § 9-26-4 (4) | |
| Burial plot. | R.I. Gen. Laws § 9-26-4 (5) | |
| Clothing. | R.I. Gen. Laws § 9-26-4 (1) | |
| Consumer cooperative association holdings to $50. | R.I. Gen. Laws § 7-8-25 | |
| Debt secured by promissory note or bill of exchange. | R.I. Gen. Laws § 9-26-4 (7) | |
| Jewelry to $2,000. | R.I. Gen. Laws § 9-26-4 (14) | |
| Motor vehicles to $12,000. | R.I. Gen. Laws § 9-26-4 (13) | |
| Prepaid tuition program or tuition savings account. | R.I. Gen. Laws § 9-26-4 (15) | |
| Public Benefit | Aid to blind, aged, disabled; general assistance. | R.I. Gen. Laws § 40-6-14 |
| Crime victims’ compensation. | R.I. Gen. Laws § 12-25.1-3 (b)(2) | |
| State disability benefits. | R.I. Gen. Laws § 28-41-32 | |
| Unemployment compensation. | R.I. Gen. Laws § 28-44-58 | |
| Veterans’ disability or survivors’ death benefits. | R.I. Gen. Laws § 30-7-9 | |
| Workers’ compensation. | R.I. Gen. Laws § 28-33-27 | |
| Tools of Your Trade | Library of practicing professional. | R.I. Gen. Laws § 9-26-4 (2) |
| Working tools to $2,000. | R.I. Gen. Laws § 9-26-4 (2) | |
| Wages | Earned but unpaid wages due military member on active duty. | R.I. Gen. Laws § 30-7-9 |
| Earned but unpaid wages due seaman. | R.I. Gen. Laws § 9-26-4 (6) | |
| Earned but unpaid wages to $50. | R.I. Gen. Laws § 9-26-4 (8)(iii) | |
| Wages paid by charitable organization or fund providing relief to the poor. | R.I. Gen. Laws § 9-26-4 (8)(i) | |
| Wages of spouse & minor children. | R.I. Gen. Laws § 9-26-4 (9) | |
| Wages of any person who had been receiving public assistance are exempt for 1 year after going off of relief. | R.I. Gen. Laws § 9-26-4 (8)(ii) | |
| Wildcard | $6,500. | R.I. Gen. Laws § 9-26-4 (16) |
Resources:
Rhode Island Bankruptcy Attorneys
Case Studies: Rhode Island Bankruptcy Exemptions
Case Study 1: Protecting Home Equity
John, a Rhode Island resident facing bankruptcy, owns a home with $100,000 in equity. Under Rhode Island bankruptcy exemptions, individuals can protect up to $500,000 in equity in their primary residence. Since John’s equity falls well below the exemption limit, he can keep his home and its equity even after filing for bankruptcy.
Case Study 2: Preserving Retirement Savings
Sarah, a middle-aged individual considering bankruptcy, has a retirement account with $150,000 in savings. In Rhode Island, retirement accounts are exempt from bankruptcy up to an unlimited amount, meaning Sarah’s retirement savings are protected from creditors and can be retained even in the event of bankruptcy.
Case Study 3: Safeguarding Personal Property
Emily, a Rhode Island resident facing financial hardship, owns a car valued at $5,000 and personal belongings worth $10,000. Rhode Island bankruptcy exemptions allow individuals to protect up to $12,000 in personal property, which includes household goods, clothing, furniture, and a vehicle. As a result, Emily can keep her car and personal belongings when filing for bankruptcy.
Find the right lawyer for your legal issue.
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.