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Debtors and creditors rarely agree upon reasonableness, and as a
result, objections filed under Rhode Island law contesting exemption
valuation are common. The law for the State of Rhode Island permits
debtors to elect either the local or national exemption lists. The
ramifications of this election are not quite as important as in many
other states, because RI does not specifically provide a bankruptcy
homestead exemption under the state option. Yet personal property
exemptions provided under the state statute create an interesting array
or problems and opportunities for Rhode Island bankruptcy lawyers.
One of the more lucrative aspects of the state exemptions pertains to
retirement accounts and contracts providing insurance benefits. In most
states, the homestead exemption provides a safe haven for retaining
assets, whereas in Rhode Island, many debtors in the past have relied
upon exempting retirement benefits, qualified Keogh, IRA and 401k plans,
and an assortment of contractually limited insurance products (life and
annuity primarily) to create exempt property. For more information
regarding exempt property law, contact a local Rhode Island bankruptcy
attorney.
See also: Rhode Island Homestead Exemption.
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