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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In Rhode Island, as in all states, bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code. Individuals and businesses in Rhode Island may file for bankruptcy under several chapters of the Bankruptcy Code, including Chapter 7 (liquidation), Chapter 11 (reorganization for businesses), and Chapter 13 (debt adjustment for individuals with regular income). Chapter 7 allows for the liquidation of a debtor's non-exempt assets to pay creditors. Chapter 13 enables individuals to keep their property and pay debts over time, usually three to five years. Chapter 11 serves primarily business debtors but is also available to individuals with substantial debts and assets. The U.S. Bankruptcy Court for the District of Rhode Island handles all bankruptcy filings in the state. Bankruptcy can offer a fresh start for debtors by discharging certain debts and stopping foreclosures, repossessions, and wage garnishments. However, it can also have long-term financial and legal consequences, so it is advisable to consult with an attorney before filing for bankruptcy.

Legal Articles

State Statutes

adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

debtor in possession

estate exemptions

hardship discharges homestead exemption

involuntary bankruptcy

liquidation

nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

petition preferential transfer priority debt proof of claim

reaffirmation of debt reorganization plan

section 341 meeting of creditors statement of financial affairs

trustee

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Articles

Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

Rhode-Island State Code