Rhode Island Bankruptcy

Individuals or businesses may apply for bankruptcy when they cannot meet their outstanding debts and financial obligations. This process allows the debtors to obtain relief from some or all of their debts.

Bankruptcy in Rhode Island proceeds under federal law, but filers may choose either the state exemptions or the federal exemption list. They are only permitted to pick one system and use it consistently. The state exemption scheme is favorable towards its residents, especially for its $500,000 homestead protection, which can be a decisive factor for homeowners.

How to File Bankruptcy in Rhode Island

You must understand all the steps and procedures associated with bankruptcy cases in Rhode Island. Gather all required documents for your case. These may include two years of tax returns, six months of income, bank statements, full asset and debt lists, titles/deeds, and lawsuits or garnishments.

You must complete a credit counseling session with a court-approved provider at least 180 days before filing. Choose your chapter & exemption scheme. You may decide to choose Chapter 7 (liquidation), Chapter 13 (3–5 year repayment), or Chapter 11 (reorganization), based on your situation. File the petition and schedules in the District of Rhode Island. Your attorney assists you, or you may file your case (pro se), while following the clerk’s intake instructions.

There is a filing fee that you must pay before you can file your documents. If you are unable to do so, request an installment or a waiver (if your chapter is eligible). Watch for the notice of your 341 meeting with all your creditors. You must attend this meeting with your ID and the requested documents. Finally, after filing your document, you must complete a debtor education and respond to trustee/court notices until discharge or plan confirmation.

Rhode Island Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

There are various types of chapters available to individuals and businesses in Rhode Island. You may choose any of the following:

Chapter 7 (liquidation)

This option is crucial for individuals who have low incomes. This chapter helps them by asking the court-appointed trustee to sell non-exempt assets to repay creditors. The state’s generous homestead and targeted personal-property protections may affect the outcome of the case.Nolo

Chapter 13 (repayment)

This chapter allows debtors to repay their debts within a specific timeframe (3–5 year plan) approved by the court. It is suitable for individuals with regular income as it enables them to reorganize debts and clear their arrears. However, the repayment plan must reflect the value of their non-exempt equity.

Chapter 11 (reorganization)

This chapter is reserved for businesses and some high-debt individuals. The beauty of this chapter is its access to continued operations while the debtors propose a new plan to repay their debts. It allows debtors to remain in control of their business without losing their assets.

Step-by-Step Checklist for Rhode Island Filers

In Rhode Island, this quick checklist will help you file for bankruptcy now or later.

• Complete a credit-counseling course
• Gather income, tax, assets, debts, and other records
• Choose a chapter and select either the state or federal exemptions
• File the petition and schedules in the District of Rhode Island
• Pay the filing fee or request relief
• Attend the 341 meeting of creditors
• Complete a debtor-education course
• Listen to the trustee and monitor court communications until discharge or plan completion.

Rhode Island Bankruptcy Court & Record Access

With a single district in Rhode Island, you must contact the court at the correct location and time to access court records.

Court Locations

• The District of Rhode Island: The court district is located in Providence. The court provides a free bankruptcy legal clinic, where the public can learn more about bankruptcy. The courthouse of the United States Bankruptcy Court for the District of Rhode Island is located in:

District of Rhode Island

Record Access

In Rhode Island, case information is available toll-free through the Court's automated Voice Case Information System (VCIS). You may call (866)-222-8029 from any touch-tone telephone to access the service. This system is available 24 hours a day, 7 days a week. You will need a case number, full name, or a Social Security number/individual taxpayer identification number to obtain case information.

Public Access to Court Electronic Records (PACER) is a web-based system that allows users with an internet connection and a PACER account to view or print case documents online. You must pay a fee of 10 cents for each page viewed.

Documents in cases filed prior to 1998 are available only in hard copy. You may also print records from the Clerk’s office public computers for a $0.10 fee per page. The Clerk's Office is open to record requests from 9:00 AM to 4:00 PM, Monday-Friday, except holidays.