Rhode Island bankruptcy laws are drawn from the Federal laws on bankruptcy. In fact, in determining a case of bankruptcy, either the Rhode Island laws or the Federal laws on bankruptcy can be applied. By filing a bankruptcy, the debtor is not in anyway escaping the debt repayment. He or she may however reduce the amount required by slashing off the interest payable. They may also have an opportunity to reset the periods that the debts would be payable and protect their assets. The repayment plan and the exemptions to what can be possessed by a creditor are determined by the law under which the bankruptcy is filed. Filing a bankruptcy however puts your credit rating on a bad side for up to 10 years.
Bankruptcy Exemptions for Rhode Island
Rhode Island bankruptcy laws exempt certain assets from possession by a creditor. The homestead protection of assets for Rhode Island is one of the highest provisions in the United States. If you intend to use a home as a primary homestead or you are already occupying it, then this cannot be taken over by a creditor to the value of $300,000. This is almost double the amount protected by the New York State laws on bankruptcy. The protection for motor vehicle in the Rhode Island bankruptcy laws is also high to the tune of $12,000. Household goods and supplies are exempted from sale by the creditor to the tune of $9,600. These provisions make Rhode Island a favorite for voluntary application of bankruptcy. You however will be required to have lived in the State of Rhode Island for more than two years prior to filing the bankruptcy.
Chapter 7 Bankruptcy Law for Rhode Island
If you are in Rhode Island and want a faster determination and clearing of a debt case, the using chapter 7 bankruptcy laws of the Rhode Island would be ideal. You will also benefit form paying less the actual debt owed and having a clean page to start from.
Chapter 13 Bankruptcy Law for Rhode Island
Chapter13 bankruptcy laws are more gentle way of clearing your debts. It leaves you with almost all assets unless you default the plan on regular debt repayment. It may also earn you better credit rating.