House approves Corvese bankruptcy bill | North Providence

PROVIDENCE — The Rhode Island House of Representatives has approved a law sponsored by State Representative Arthur Corvese that allows those who file for bankruptcy to keep $500 of their personal savings.

The bill, which is now going to the Rhode Island Senate, is intended to provide some protection for individuals and families in financial difficulty.

“It does not serve the public good to create misery. People file for bankruptcy because they need relief and protection. This protection should include the ability to keep a small amount of money for personal needs. Five hundred dollars isn’t a lot for a creditor, but it’s enough to make sure a family has provisions between paychecks or can take care of a car repair so they can can continue to go to work,” Corvese said in a press release.

The legislation (2022-H 6623) adds $500 of 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, which are exempt from seizure.