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As part of a pervasive national reform agenda, all U.S. citizens are
now required to pay a greater portion of their income to large financial
institutions. The Bankruptcy Abuse Prevention Act replaced state
jurisdiction that had existed for over 225 years, and created a maximum
cap on the value of homestead protection states could legally provide
citizens.
According to the Rhode Island Homestead Exemption Act, $200,000
exempt equity in a primary residence is protected from seizure by
creditors. As of April 25, 2005, the Rhode Island homestead exemption law
is no longer enforceable in federal bankruptcy proceedings, but only to
the extent of value authorized. the new federal limit is now $125,000.
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