Most people want to know whether they can keep valuable property before filing for bankruptcy—especially a home. If you qualify to use the Rhode Island homestead exemption, you can protect some or all of the equity in your house. In this article, we explain:
For more bankruptcy information, read How to File Bankruptcy in Rhode Island.
Rhode Island lets filers use either the federal exemption system or Rhode Island's state exemption system, so you'll have two homestead amounts to choose between. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.
We've listed both exemption amounts below to help you make an informed choice. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.
If you're married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
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Federal Homestead Exemption |
Rhode Island Homestead Exemption |
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Homestead amount |
$27,900 |
$500,000 |
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Can spouses filing bankruptcy jointly double the exemption? |
$55,800 is available to spouses who co-own property. |
No. |
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Homestead exemption law |
11 U.S.C. § 522(d)(1) |
R.I. Gen. Laws § 9-26-4. |
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Other information |
Amounts will adjust on April 1, 2025. |
Amount changes periodically. |
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Compare other federal and state exemptions. |
The homestead exemption applies to real property in Rhode Island, including a home or other land and buildings that the owner occupies or intends to occupy as a principal residence.
If you hold property as tenancy by entirety with your spouse: If one spouse files for bankruptcy—not both—the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this is a tricky area of law. Talk with a local bankruptcy attorney before filing to ensure that you don't lose valuable property.
You can file for bankruptcy in Rhode Island after living there for more than 180 days. However, you must live in Rhode Island much longer before using Rhode Island exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
Also, to claim the total value of the Rhode Island homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $189,050 (this figure will adjust on April 1, 2025).
Learn more about this requirement, the current amount of the federal cap, and other important exceptions to homestead exemptions.
In Rhode Island, the homestead exemption is automatic – you don't have to file a homestead declaration with the recorder's office to claim the homestead exemption in bankruptcy. Instead, you'll list your homestead exemption on Schedule C: The Property You Claim as Exempt when completing your bankruptcy forms.
You can find out about other requirements you'll need to meet to avoid losing your home in Your Home in Chapter 7 or Your Home in Chapter 13.
You'll find Rhode Island's homestead exemption in the Rhode Island General Laws at § 9-26-4.1 on the Rhode Island General Laws website. Learn about finding state statutes in Laws and Legal Research.
Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated April 7, 2022