Bankruptcy and Judgments: What are the State Exemptions for Rhode Island?
Your biggest single concern if you are filing for bankruptcy or if you are on the receiving end of a judgment is making sure that you protect as many of your assets and items of personal property as you are legally entitled to. While US bankruptcy laws do not require all assets and property to be relinquished to pay off outstanding debt (the same goes for judgments), there are restrictions and limitations on what you can claim exemption for and the percentage you can claim.
Bankruptcy laws vary between states, and the state exemptions for Rhode Island are no exception. Residents living here are entitled to protect a portion of their property from creditors, provided that property has not been used as collateral for a loan. For instance, you will not lose exempt property to a credit card company because there is no collateral attached to the debt. However, if you have pledged your boat as security for a loan, you are no longer protected by exemptions laws.
If you are filing for bankruptcy, you’re given a choice between using the exemptions found in the Federal Bankruptcy Code or the exemptions found in state bankruptcy laws. The only requirement is that you use one set of laws only. You are not allowed to pick and choose exemptions from both sets of laws. for judgments, You’ll use the state exemptions.
If you plan on using the state exemptions for Rhode Island, you are entitled to the following:
- A homestead exemption of $200 000 for land and buildings that you occupy or have intensions of occupying as your primary abode. If you are a married couple and you own a home jointly (called Tenancy by Entirety), the property cannot be taken by creditors until the tenancy has been dissolved or the ‘debtor’ spouse survives the ‘non-debtor’ spouse in most cases.
- Cars: Up to $10,000
- Certain items of personal property, tools of the trade, life insurance and pension and retirement savings for certain individuals are also protected. There is also provision for income and wages, but these extend only to military personnel on active duty, seamen, minors and wages paid by charities.
For residents of Rhode Island, it is important to thoroughly compare the state exemptions with the Federal exemptions under the Federal Bankruptcy Code before filing for bankruptcy. Taking this measure will ensure that you make the decision which best benefits you.
Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=RI
http://www.cga.ct.gov/2005/rpt/2005-R-0368.htm
Related posts:
- Bankruptcy and Judgments: What are the State Exemptions for Pennsylvania?
- Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
- Bankruptcy and Judgments: What are the State Exemptions for Tennessee?
- Judgments and Bankruptcy: What are The State Exemptions for Alabama?
- How to Protect ALL of your Assets from Creditors With Tenancy by the Entirety?
