Tag Archives: chapter 7

Can I file bankruptcy in Rhode Island if I lived in another state recently?

Recently lived in another state of New England than Rhode Island?Rhode Island’s bankruptcy laws are generous as to what belongings you’re allowed to keep (exempt) after filing bankruptcy. In fact, it’s rare for anyone to lose a house, car or anything else in a RI bankruptcy filing (assuming they’ve hired an experienced RI bankruptcy attorney).

Generally speaking, you can file bankruptcy in Rhode Island if you’ve live here for the last 6 months. So for example if you’ve lived in Warwick, RI for the last 180 days, you can file in the District of Rhode Island.

There is a catch, however, if you’ve recently moved here from out-of-state. Even if you’ve lived here for over 180 days, you may still be under your old state’s laws in terms of what things you’re allowed to keep after the bankruptcy.

Bottom line: the longer you’ve lived here, the better. You’ll want to consult with a Rhode Island attorney experienced with bankruptcy to ensure you’re eligible to keep your house, car, and other belongings through a RI bankruptcy.

Filing bankruptcy again: How long must I wait?

People sometimes find it necessary to file bankruptcy again. The good news is you can file again; the bad news is you may want to wait a while. Under the new bankruptcy law, you can file a Chapter 7 bankruptcy eight years after you initially filed for Chapter 7 . You must wait four years to file for Chapter 13 bankruptcy again.

You can actually file for Chapter 13 even before the 4 year limit, but in this case you’ll have to pay back 100% of your debt over time. While this might not sound like an appealing option, it may be a useful approach for people attempting to save their home from foreclosure.

Chapter 7 vs. Chapter 13: What’s the difference?

With a Chapter 7 Bankruptcy, many types of debt can be eliminated completely. However, not everyone is eligible to file for Chapter 7 bankruptcy. Multiple factors (such as your income level, family size, medical bills, etc.) determine whether you are eligible for Chapter 7. A Rhode Island attorney experienced with bankruptcy should be able to determine if you’re eligible.

For some people a Chapter 13 Bankruptcy is the best option. People often file for Chapter 13 bankruptcy protection in order to stop foreclosure on their homes. This form of bankruptcy often involves partial repayment of debts over a three- to five-year period.

Since the passage of the new bankruptcy law (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005), more middle class individuals have been filing for Chapter 13 bankruptcy protection.

Bankruptcy filings on the rise in Rhode Island

After the new bankruptcy law was passed in 2005, the number of bankruptcy filings in Rhode Island declined significantly.

Now the number of bankruptcy filings is rising. In the first quarter of this year 583 Rhode Islanders filed for bankruptcy, according to court records, which is nearly double last year’s filings.

bankruptcy filings are rising