Friday, February 18, 2022
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The Rhode Island House of Representatives on Thursday approved legislation allowing 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 hardship.
“It does not serve the public good to create misery. 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 the bill’s sponsor, Rep. Arthur Corvese (D-Dist. 55, North Providence).
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“Five hundred dollars isn’t a lot for a creditor, but it’s enough to make sure a family can get groceries between paychecks or can take care of a car repair so that she can continue to go to work,” he added.
The legislation (2022-H 6623) adds $500 of savings or other deposits held in a bank or financial institution to the list of assets, such as a family’s clothing and a limited amount of household furnishings, which are exempt from seizure.
Following Thursday’s action, the bill now goes to the Rhode Island Senate.