Filing for Bankruptcy? RI House Approves Bill To Let You Still Keep Some Money

Filing for Bankruptcy? RI House Approves Bill To Let You Still Keep Some Money

The Rhode Island House of Representatives on Thursday approved legislation to allow those who file for bankruptcy to keep $500 of their personal savings.

The bill is intended to provide some protection for individuals and families experiencing financial difficulties.

“It does not serve the public good to create destitution. People file for bankruptcy because they need relief and protection. That protection should include the ability to keep a small amount of money for personal needs," said bill sponsor Representative Arthur Corvese (D-Dist. 55, North Providence).

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"Five hundred dollars is not much to a creditor, but it is enough to make sure a family has groceries between paychecks or can handle a car repair so they can continue to get to work,” he added.

The legislation (2022-H 6623) adds $500 in savings or other deposits held in a banking, or financial institution to the list of assets, such as a family’s clothing and a limited amount of household furnishings, that are exempt from attachment.

Following Thursday's action, the bill now goes to the Rhode Island Senate.