Bankruptcy in Rhode Island (2026): Exemptions & Means Test

Rhode Island is one of the states that gives bankruptcy filers a choice: you can use Rhode Island's own exemptions or the federal bankruptcy exemptions, whichever protects more of your property. Bankruptcy itself is federal law, but the exemptions that decide what you keep, and the means-test income that decides which chapter you can use, are state-specific. Rhode Island's state homestead exemption is one of the most generous in the country, so confirm the current figures and the residency timing rules before relying on them.

This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.

Does Rhode Island use state or federal bankruptcy exemptions?

Rhode Island is not an opt-out state. A debtor who files bankruptcy in Rhode Island may elect to use the Rhode Island exemptions in Chapter 9-26 of the General Laws, or instead claim the exemptions allowed under federal law in 11 U.S.C. 522(d). In practice that means a Rhode Island filer picks one of two complete menus: the state list or the federal list. You cannot mix items from both. About a third of states, including Rhode Island, allow this choice; roughly two-thirds have opted out and force filers onto state law only.

The choice usually turns on home equity. Rhode Island's state homestead is far larger than the federal one, so homeowners with meaningful equity almost always choose the state set, while renters and filers with little home equity sometimes prefer the federal set because of its larger wildcard. Married couples filing jointly can generally each claim a full set of whichever system they choose, which often doubles the protected amounts, although the homestead exemption itself cannot be doubled.

Rhode Island homestead exemption

Rhode Island's state homestead exemption is the headline protection for homeowners, and at $500,000 it is among the most generous fixed homestead amounts in the United States. Under R.I. Gen. Laws 9-26-4.1, an owner who occupies or intends to occupy a residence as a principal home may exempt up to $500,000 of equity. Unlike some states, Rhode Island does not let spouses stack two homestead exemptions on the same home, so the cap stays at $500,000 even for a married couple.

Federal law adds two timing rules that can override a generous state homestead. First, to use Rhode Island's exemptions at all, a filer generally must have been domiciled in the state for the 730 days (about two years) before filing. Second, under 11 U.S.C. 522(p), home equity acquired within roughly 1,215 days (about 40 months) before filing is capped at a federal limit of $214,000 for cases filed between April 1, 2025 and March 31, 2028, regardless of the higher state amount. These rules are meant to prevent people from moving assets into a high-homestead state shortly before filing.

A filer who would rather use the federal system protects up to $31,575 of home equity under 11 U.S.C. 522(d)(1). Homestead protection covers equity, not the full value of the home, so understanding your equity position is essential before choosing a system.

Vehicle, wildcard, and personal-property exemptions

Rhode Island's personal-property exemptions in R.I. Gen. Laws 9-26-4 are fairly robust. The main categories include:

• Motor vehicles: up to $12,000 of equity in all motor vehicles the debtor owns. The statute caps the total across every vehicle rather than allowing $12,000 per vehicle.
• Wildcard: up to $6,500 that can be applied to any property or used to increase another exemption.
• Household furniture, clothing, beds, and bedding: up to $9,600.
• Tools of the trade and professional library: up to $2,000.
• Wages: a portion of wages is protected from garnishment under state law, and 75 percent of disposable earnings are protected from garnishment under federal law.
• Retirement accounts and certain benefits are protected under separate state and federal exemptions regardless of which menu you choose.

Filers who need a larger wildcard sometimes compare the federal exemptions, because 11 U.S.C. 522(d)(5) provides a wildcard of $1,675 plus up to $15,800 of unused homestead exemption. But because Rhode Island's homestead is so large, most homeowners choose the state set. Confirm the current amounts before filing.

The Chapter 7 means test in Rhode Island

The means test screens Chapter 7 filings for a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for a Rhode Island household of the same size. If your income is at or below the Rhode Island median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.

The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the Rhode Island median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.

Chapter 7 vs. Chapter 13 in Rhode Island

Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because Rhode Island's exemptions protect most household property and a very large amount of home equity, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.

Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage, because the plan can spread out the missed payments and stop a foreclosure while you catch up.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.

Where you file bankruptcy in Rhode Island

Rhode Island is a single federal judicial district, so all Rhode Island bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Rhode Island, located in Providence. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.

What bankruptcy can and cannot do

Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.

Exemption amounts and the homestead timing rules can change a case dramatically, so get a free bankruptcy evaluation from a Rhode Island lawyer comparing both exemption menus and both chapters before you file (attorney advertising).

Frequently Asked Questions

Does Rhode Island use state or federal bankruptcy exemptions?

Rhode Island lets you choose. It has not opted out of the federal exemptions, so a filer domiciled in Rhode Island may use either the state exemptions in R.I. Gen. Laws Chapter 9-26 or the federal bankruptcy exemptions in 11 U.S.C. 522(d). You pick one full menu, not a mix of both.

What is the homestead exemption in Rhode Island?

Rhode Island's homestead exemption under R.I. Gen. Laws 9-26-4.1 protects up to $500,000 of equity in a principal residence, one of the highest in the country. Spouses cannot double it. Federal timing rules can cap equity acquired within about 40 months before filing at $214,000, and you generally must have lived in Rhode Island for 730 days to use the state exemptions. Confirm the current amount before filing.

What is the Rhode Island median income for the means test?

For cases filed on or after April 1, 2026, the Rhode Island median family income is $77,653 for 1 person, $98,736 for 2, $119,419 for 3, and $137,479 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.

Will I lose my house or car if I file bankruptcy in Rhode Island?

Often no. Rhode Island's homestead exemption of up to $500,000 and a vehicle exemption of up to $12,000 protect equity up to those limits. Most filers keep their home and car as long as they stay current on the related loans, though federal timing rules can cap recently acquired home equity at $214,000.

Can I use the federal bankruptcy exemptions in Rhode Island?

Yes. Because Rhode Island has not opted out, you may choose the full federal exemption set in 11 U.S.C. 522(d) instead of the Rhode Island exemptions. Filers with little home equity sometimes prefer the federal set for its larger wildcard, while homeowners with substantial equity almost always choose Rhode Island's much higher homestead.

Where do I file for bankruptcy in Rhode Island?

Rhode Island is a single federal district, so all cases are filed in the U.S. Bankruptcy Court for the District of Rhode Island in Providence. You must complete approved credit counseling before filing.

What debts cannot be discharged in a Rhode Island bankruptcy?

Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.

Does filing bankruptcy stop a foreclosure in Rhode Island?

Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.