Rhode Island Bankruptcy Exemptions

When you file a bankruptcy case in Rhode Island, you can choose either Rhode Island state exemptions or the federal bankruptcy exemptions , but you cannot mix them. Here’s an overview of the major Rhode Island exemptions, plus references to the federal exemption set for items Rhode Island might not cover.

Important: Exemptions change periodically. Always check if statutes and amounts are be current. Verify with a bankruptcy attorney to confirm that these exemptions still apply.

Homestead Exemption

Amount: \$500,000 in equity. (R.I. Gen. Laws § 9-26-4.1.)

  • You must live (or intend to live) on the property.
  • Married couples cannot double the homestead exemption.
  • If you purchased the home less than 40 months ago, a federal cap might reduce your homestead to \$189,050 if you file on or after April 1, 2022 (subject to updates). See 11 U.S.C. 522(p),(q).

Motor Vehicle Exemption

Amount: \$12,000 equity in one vehicle. (R.I. Gen. Laws § 9-26-4)

Wildcard Exemption

Amount: \$6,500 in any property. (R.I. Gen. Laws § 9-26-4(16))

A wildcard allows you to protect an asset not covered by other exemptions or to add it to an existing exemption to increase its limit.

Other Rhode Island Exemptions

Personal Property :

  • \$9,600 in furniture, household goods and supplies ( spouses cannot double ) (R.I. Gen. Laws § 9-26-4.1)
  • \$300 in family books (R.I. Gen. Laws § 9-26-4(4))
  • Burial ground (R.I. Gen. Laws § 9-26-4(5))
  • Clothing (R.I. Gen. Laws § 9-26-4(1))
  • \$2,000 in jewelry (R.I. Gen. Laws § 9-26-4(14))
  • Prepaid/savings tuition account (R.I. Gen. Laws § 9-26-4(15))

Tools of the Trade :

  • Library of a practicing professional (R.I. Gen. Laws § 9-26-4(2))
  • \$2,000 in tools used for work (R.I. Gen. Laws § 9-26-4(2))

Wages :

  • All earned but unpaid wages for active-duty military/sailor
  • Up to \$50 owed to other employees (R.I. Gen. Laws § 9-26-4)
  • All wages of a spouse or minor children for one year after public benefits, or amounts paid by a charitable fund to low-income individuals (R.I. Gen. Laws § 9-26-4)

Pensions :

  • Tax-exempt retirement accounts (R.I. Gen. Laws § 9-26-4(11))
  • ERISA-qualified benefits (R.I. Gen. Laws § 9-26-4(12))
  • Firefighter, police officer benefits (R.I. Gen. Laws § 9-26-5)
  • Private employee benefits (R.I. Gen. Laws § 28-17-4)
  • State and municipal employee benefits (R.I. Gen. Laws § 36-10-34)

Public Benefits :

  • Blind, aged, disabled benefits; general assistance (R.I. Gen. Laws § 40-6-14)
  • State disability benefits (R.I. Gen. Laws § 28-41-32)
  • Crime victims' compensation (R.I. Gen. Laws § 12-25.1-3(b)(2))
  • Workers' compensation (R.I. Gen. Laws § 28-33-27)
  • Unemployment compensation (R.I. Gen. Laws § 28-44-58)
  • Veteran's disability/survivor's death benefits (R.I. Gen. Laws § 30-7-9)

Insurance :

  • Fraternal society benefits (R.I. Gen. Laws § 27-25-18)
  • Accident/sickness policy proceeds (R.I. Gen. Laws § 27-18-24)
  • Life insurance policy proceeds, if the contract states it can’t be used to pay creditors (R.I. Gen. Laws § 27-4-12)
  • Temporary disability insurance (R.I. Gen. Laws § 28-41-32)

Miscellaneous :

  • A minor child's earnings (R.I. Gen. Laws § 9-26-4(9))
  • Business partnership property (R.I. Gen. Laws § 7-12-36)

*All amounts are subject to periodic legislative updates or interpretation by the courts. Additionally, these figures do not reflect the optional federal bankruptcy exemption amounts.

Retirement Accounts Under Federal Law

All filers—whether choosing state or federal exemptions—can keep tax-exempt retirement accounts like 401(k), 403(b), profit-sharing, SEP, SIMPLE IRAs, and traditional & Roth IRAs up to \$1,512,350 per person (cases filed between April 1, 2022, and March 31, 2025). (11 U.S.C. §§ 522(b)(3)(C), (n).)

Residency Requirements & Homestead Timing

You must live in Rhode Island for at least 730 days (2 years) before filing, or you may need to use your previous state's exemptions. (11 U.S.C. § 522(b)(3)(A))

To claim a full homestead exemption, you typically must have owned the home for 1,215 days (40 months) or more before filing. Otherwise, the homestead is capped at \$189,050 if you bought the property recently (some exceptions apply). (11 U.S.C. §§ 522(p), (q))

Chapter 7 vs. Chapter 13 Treatment

In Chapter 7 , any nonexempt assets may be sold by the bankruptcy trustee to pay creditors. In Chapter 13 , you keep all property but must pay its nonexempt value to unsecured creditors over 3-5 years.

Disclaimer

The above content is for informational purposes only and does not constitute legal advice. Exemption amounts, statutes, and interpretations can change. Always consult a licensed Rhode Island bankruptcy attorney or refer to the Rhode Island General Laws for the most up-to-date, accurate information.

Consult a Rhode Island Bankruptcy Attorney