Rhode Island Bankruptcy Exemptions

Rhode Island bankruptcy exemptions are not mandatory, which means the debtors getting bankrupt gets a choice to use the federal set of exemptions instead of the state-specified exemptions. However, the federal supplemental exemptions can be used only in conjunction with the state-specified exemptions. Following is a general overview on what types of assets and properties are exemptible in this state and up to what extent.


Under the wildcard category, you can exempt any property (can be more than one) of your choice up to the value of $5000.


Rhode Island bankruptcy exemptions can be availed for wages in the following manner.

- 100% of wages of minor children and spouse
- 100% of the fund providing relief to the poor
- 100% of Wages paid by any charitable organization
- Up to $50 of Earned but unpaid wages
- 100% of Earned but unpaid wages if due to a seaman or a military member on active duty
- 100% of wages if you have been receiving public assistance but up to a period of twelve months only

Tools Of Trade

Up to $1,500 can be exempted in working tools. Besides that, library of practicing professional is also exemptible in full.

Public Benefits

You can avail Rhode Island bankruptcy exemptions in full (100%) for the following types of public benefits.

- Workers’ compensation
- Veterans’ disability or survivors’ death benefits
- Unemployment compensation
- State disability benefits
- Family assistance benefits
- Crime victims’ compensation
- Aid to disabled, aged, and blind

Personal Property

Following is the list of personal assets and properties that are exemptible under Rhode Island bankruptcy laws.

- Tuition savings account or prepaid tuition program
- Up to $12,000 in Motor vehicles
- Up to $2,000 in Jewelry
- 100% of Debt secured by bill of exchange or promissory note
- Up to $50 in Consumer cooperative association holdings
- 100% of Clothing
- 100% of burial plot
- Up to $300 in Bibles and books
- Up to $9,600 in aggregate total in household goods and supplies, including furniture, bedding, and beds

Pensions And Retirement Savings

Rhode Island bankruptcy exemptions can be availed in this category as per the following provisions.

- State & municipal employees pensions
- Private employees pensions
- Police officers pensions
- All types of IRAs
- Firefighters pensions
- ERISA-qualified benefits


Earnings of a minor child and any Property used in a business partnership are exemptible in full in the miscellaneous category.


The following types of insurance benefits and proceeds are also exemptible in full.

- Fraternal benefit society benefits
- Temporary disability insurance
- Life insurance proceeds – the only condition is that there must be a clause in the policy contract that prohibits the use of the proceeds to settle debts owed by the policyholder
- Sickness or accident benefits, avails, or proceeds


Homestead exemptions are allowed in this state. The maximum limit is $300,000 in building and land that the debtor occupies or intends to occupy so that the same could be used as a residence. Married couples also get the same exemptions; unlike many other states, Rhode Island does not allow them to have double exemption in this category.

Since plenty of different factors are taken into account in order to determine the types of exemptions that a debtor may qualify for, you are advised to consult with an experienced Rhode Island bankruptcy attorney for a more accurate description on what types of exemptions might be applicable in your specific case.

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One Response to “Rhode Island Bankruptcy Exemptions”

  1. macc says:

    Any individual who is going to be declared as bankrupt in Rhode Island can get the benefits from this article. The article is capable of providing you every useful information which you may need to know to get the benefit of exemptions under bankruptcy. The state authorities provide you a option to choose between federal set of exemptions and the state specified exemptions. If you go with state specified exemptions you can also get the benefits of federal supplemental exemptions. You can exempt your property up to a specific limit under the wild card category. Some wages under different categories can also get exempt up to the full. If you need some specific tools in your trade, it can also get exempted. Fully exemptions can be taken in case of some certain categories of public benefits like workers compensation aid to disabled, aged etc. Personal property is also exempted according to some specified programs. The state authorities provide you a chance to start a fresh life after getting out of the traumatic phase of your life which is bankruptcy.

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