Filing Chapter 7 Bankruptcy in Rhode Island (2026)
Reviewed by DocDraft Legal Team · Rhode Island · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep depends heavily on Rhode Island. Rhode Island is a choice state: you may elect either the federal 11 U.S.C. 522(d) exemptions or the Rhode Island exemptions, but not both. Rhode Island's state homestead exemption is a high $500,000 under R.I. Gen. Laws 9-26-4.1, which makes the state set attractive for homeowners with real equity. This page explains Rhode Island's homestead, vehicle, and wildcard figures, the means-test median income, and the single U.S. Bankruptcy Court for the District of Rhode Island where residents file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Rhode Island use state or federal bankruptcy exemptions?
Rhode Island is a choice state. Unlike opt-out states, it lets a debtor elect either the federal 11 U.S.C. 522(d) exemptions or the Rhode Island exemptions under R.I. Gen. Laws chapter 9-26. You pick one full set, not a mix. Homeowners with equity often prefer the state set for its large homestead.
Can I keep my house if I file Chapter 7 in Rhode Island?
Often yes. Under R.I. Gen. Laws 9-26-4.1, the Rhode Island homestead exemption protects up to $500,000 in equity in land and buildings you occupy or intend to occupy as a principal residence. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Rhode Island?
Usually yes if your equity is modest. Rhode Island exempts $12,000 of motor vehicle equity under R.I. Gen. Laws 9-26-4(13). If your car equity is at or below that figure, the vehicle is protected. The alternative federal set exempts a smaller amount, so the state figure often keeps the vehicle fully covered.
What is the income limit to file Chapter 7 in Rhode Island?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Rhode Island are $77,653 for one earner, $98,736 for two, $119,419 for three, and $137,479 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Rhode Island's Choice of Federal or State Exemptions and the $500,000 Homestead
Rhode Island is one of the roughly sixteen choice states: instead of forcing debtors onto a single set, it lets a Chapter 7 filer elect either the federal exemptions under 11 U.S.C. 522(d) or the Rhode Island exemptions in R.I. Gen. Laws chapter 9-26. A married couple can double the federal set but must both use the same system. The headline reason many Rhode Islanders pick the state set is the homestead: R.I. Gen. Laws 9-26-4.1 protects up to $500,000 of equity in a principal residence, far above the federal homestead. The state set also exempts $12,000 of motor vehicle equity under R.I. Gen. Laws 9-26-4(13), a $6,500 wildcard in personal or consumer property, and up to $9,600 in household furniture and goods under 9-26-4(3). Renters and low-equity filers sometimes prefer the federal set for its portable wildcard. Rhode Island has a single federal bankruptcy court, the U.S. Bankruptcy Court for the District of Rhode Island in Providence, where every resident of the state files.
Relevant Laws
Rhode Island Homestead Exemption (R.I. Gen. Laws 9-26-4.1)
Sets the Rhode Island homestead exemption at up to $500,000 of equity in land and buildings the debtor occupies or intends to occupy as a principal residence. This large homestead is the main reason many Rhode Island homeowners choose the state exemption set in Chapter 7.
Rhode Island Property Exemptions and Federal Choice (R.I. Gen. Laws 9-26-4)
Lists the Rhode Island personal-property exemptions, including household goods, motor vehicle, wildcard, wages, and retirement. Rhode Island has not opted out of the federal exemptions, so a debtor may instead elect the federal 11 U.S.C. 522(d) set.
Rhode Island Motor Vehicle and Wildcard Exemptions (R.I. Gen. Laws 9-26-4(13))
Exempts $12,000 of equity in a motor vehicle under subsection (13), alongside the state's consumer-goods wildcard and the $9,600 household-goods exemption under subsection (3). These figures often let a Rhode Island filer keep a vehicle and ordinary belongings.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a state opt out of the federal 522(d) exemptions, which Rhode Island has not done, so filers may elect the federal set. Section 707(b) sets the means test measured against state median income.
Regional Variances
Rhode Island Chapter 7 Exemption Table
Homestead
R.I. Gen. Laws 9-26-4.1: up to $500,000 of equity in land and buildings you occupy or intend to occupy as a principal residence. This high state homestead is the main draw of the Rhode Island set. The alternative federal homestead under 11 U.S.C. 522(d)(1) is far smaller.
Motor vehicle
R.I. Gen. Laws 9-26-4(13): $12,000 of equity in a motor vehicle. Equity above that figure may be reachable by the trustee. This exemption is larger than the federal vehicle exemption, so the state set often keeps a car fully protected.
Wildcard
The Rhode Island state set provides a $6,500 wildcard that can be applied to personal or consumer property not otherwise covered. Because Rhode Island is a choice state, a filer compares this against the federal portable wildcard when deciding which system to use.
Personal property
R.I. Gen. Laws 9-26-4(3): up to $9,600 in household furniture, beds, and family goods. Additional categories cover clothing, tools of the trade up to $2,000 under 9-26-4(2), and other necessary items. These protect ordinary belongings in a Chapter 7 case.
Wages
R.I. Gen. Laws 9-26-4(8): wages are largely exempt for wage earners, with broad protection for the debtor's earnings and added protection for those who have received public assistance. This shields most ordinary income from the bankruptcy estate.
Retirement and tools
R.I. Gen. Laws 9-26-4(11) and (12) exempt retirement plans and IRAs, and 9-26-4(2) exempts tools of the debtor's trade up to $2,000. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law regardless of which exemption set you choose.
Suggested Compliance Checklist
Confirm the current Rhode Island means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Rhode Island median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $77,653 for one, $98,736 for two, $119,419 for three, and $137,479 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Rhode Island and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose federal or Rhode Island exemptions and value your assets
Before preparing your schedules days after startingDecide between the federal 11 U.S.C. 522(d) set and the Rhode Island set in R.I. Gen. Laws chapter 9-26, weighing the $500,000 state homestead against the federal portable wildcard. Value your home, vehicle, and personal property so you can match assets to exemptions. You must use one full set.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Rhode Island in Providence, the single federal bankruptcy court for the state. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Rhode Island means-test median income | Check your household size against the U.S. Trustee Rhode Island median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $77,653 for one, $98,736 for two, $119,419 for three, and $137,479 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Rhode Island and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose federal or Rhode Island exemptions and value your assets | Decide between the federal 11 U.S.C. 522(d) set and the Rhode Island set in R.I. Gen. Laws chapter 9-26, weighing the $500,000 state homestead against the federal portable wildcard. Value your home, vehicle, and personal property so you can match assets to exemptions. You must use one full set. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Rhode Island in Providence, the single federal bankruptcy court for the state. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Rhode Island is a choice state. It has not opted out of the federal exemptions, so a debtor filing in Rhode Island may elect either the federal 11 U.S.C. 522(d) set or the Rhode Island exemptions in R.I. Gen. Laws chapter 9-26. You must pick one full set and cannot combine state and federal exemptions.
Under R.I. Gen. Laws 9-26-4.1, the Rhode Island homestead exemption protects up to $500,000 of equity in land and buildings you occupy or intend to occupy as a principal residence. This is a high state homestead, which is why many Rhode Island homeowners with equity choose the state set over the smaller federal homestead.
The Rhode Island state set provides a $6,500 wildcard that can be applied to personal or consumer property to protect assets that other exemptions do not cover. The alternative federal set offers its own portable wildcard. Because you must choose one system, filers weigh Rhode Island's larger homestead against the federal wildcard flexibility.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Largely yes. Under R.I. Gen. Laws 9-26-4(8), wages are exempt for wage earners, with broad protection for the debtor's earnings, and separate rules further protect the wages of those who have received public assistance. Retirement accounts are also exempt under R.I. Gen. Laws 9-26-4(11) and (12), so ordinary earnings and retirement savings are usually safe.
Other Rhode Island guides
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