How To File Bankruptcy for Free in Rhode Island

Collect Your Rhode Island Bankruptcy Documents

Everyone filing for Chapter 7 bankruptcy in Rhode Island must submit official bankruptcy forms. To fill out the forms, you’ll need to first collect some financial documents that have the information you need to complete the forms. This will make the bankruptcy process easier.

You can begin by collecting the necessities:

• Your tax returns from the last two years,

• Your paycheck stubs from the 60 days before you file bankruptcy, and

• A bank statement that shows your recent activity. When you file your forms with the court, you’ll also need to provide a bank statement that includes the date you file bankruptcy. 

You’ll need these documents whether or not you have an attorney. It will help you to also collect:

• Bank statements from the past 6-12 months;

• Creditor and collection agency statements, bills, and letters; and

• A credit report from Experian, TransUnion, and Equifax.

Federal law entitles you to a free credit report from each of the three major credit reporting agencies every year. If you use Upsolve’s free filing tool, it will pull a report for you. Your credit report will help you verify you’ve listed every creditor on your bankruptcy documents. You can also cross-reference information on your credit report with your bills and letters from debt collectors.

Take a Credit Counseling Course

You’re required to take a credit counseling course in the six months (180 days) before you  file a Chapter 7 bankruptcy in Rhode Island. The course is intended to make sure everyone filing bankruptcy knows all their debt relief options. After you complete the credit counseling course, you’ll get a certificate of completion, which is valid for 180 days. You’ll need to submit this to the court when you file your bankruptcy petition. 

You can take the course when it’s convenient for you. It will take 1-2 hours to complete. Most courses are held online or over the phone. Your course must be from a credit counseling agency that has been approved to offer the course in Rhode Island. The course does cost money, but you can apply for a fee waiver to take the course for free if you can’t afford it.

Complete the Bankruptcy Forms

Most of the Chapter 7 bankruptcy forms you’ll need to file are federal forms, which means they’re the same for everyone across the United States. All of the forms you need can be downloaded for free as fillable PDFs, either as one full form packet from the Rhode Island Bankruptcy Court or individually at USCOURTS.gov. You can also download an instruction manual for free to help guide you through all of the forms.

If you hire a lawyer, they’ll fill the forms out for you after you complete a questionnaire from their office and give them your bankruptcy documents. If you’re filing without a lawyer, you can fill out the forms yourself. You may also be eligible to use Upsolve’s free filing tool. If you use the Upsolve tool, you’ll fill out will an online questionnaire, and then the Upsolve software will generate your bankruptcy forms based on the information you provided.

As you’re filling out the forms, be honest and thorough. Remember that you have to sign everything under penalty of perjury when you file your Rhode Island bankruptcy case.

Get Your Filing Fee

The court filing fee for a Chapter 7 bankruptcy in Rhode Island is $338. The court accepts cash (exact amount only), money orders, or cashier's checks. If you’re self-represented, you can pay your filing fee online with a debit card or through an electronic bank transfer, but you can’t use a debit card in person. Paying online is a new option as of April 30, 2020. 

If you can’t pay the $338 in full, you have options. You can request a fee waiver or apply to pay with an installment plan. 

If your household income is less than 150% of the federal poverty guidelines and you can’t pay the filing fee in installments, you may qualify for a fee waiver. See the Rhode Island Fee Waiver Eligibility table below. In Rhode Island, you must fill out the  following forms to apply for a fee waiver:

• Application for Waiver of Chapter 7 Fee

• Local Form 1006-1.1

• Schedules I and J

If your income is more than 150% of the federal poverty guidelines, you won’t qualify for a fee waiver, but you can apply to pay the filing fee in installments. Rhode Island local rules require that everyone filing Chapter 7 in Rhode Island pay at least 25% of the total fee, which is $84.50, with their initial paperwork. If you’re approved for an installment plan, you’ll get the opportunity to pay the remainder of the fee in three more monthly payments. 

It’s usually best to wait until you can pay the full filing fee, but in some cases, people need to file bankruptcy as soon as possible because they’re facing foreclosure, wage garnishment, or other serious collection measures and need the benefit of the automatic stay. When you file your bankruptcy petition, the court issues an automatic stay, which orders creditors to stop collection activity.

If you can, plan on paying the full fee at the time your Rhode Island bankruptcy case is first filed. If you agree to an installment plan and don’t keep the agreement, your bankruptcy case could be dismissed.

Print Your Bankruptcy Forms

Once you have at least the first installment payment for your fee and your forms are complete, you’ll want to print your bankruptcy forms. Print one copy to submit to the court, and print a second copy to keep for your files. Keep a checklist handy so you can double-check that you have all the required forms before you file.

Make sure your documents are printed in the following form:

• On regular, white letter-size paper (8 ½” x 11”)

• In black ink

• On only one side of the page — no “duplex” (double-sided) pages

Be sure to check your printer settings before you print. Also, all your forms must be complete. If there’s a question that doesn’t apply to you, don’t leave it blank. Instead, write or type “none” or “not applicable. Finally, sign in every signature spot.

If you use Upsolve’s filing tool, you’ll receive a bankruptcy document packet as a single PDF download, and there will be dividers that tell you where to sign.

File Your Forms With the Rhode Island Bankruptcy Court

You can file your Rhode Island bankruptcy documents in person or by mail. If you have an attorney, they’ll submit the documents online through the Electronic Court Filing (ECF) system, but this isn’t an option if you’re filing your case without an attorney. 

If you don’t have an attorney you can file your bankruptcy petition by email and upload your personal identification documents to Rhode Island’s Electronic Drop Box. This is available to self-represented parties only. You’ll have to fill out an extra bankruptcy form to be officially approved for the email option. There’s also a form for the Electronic Drop Box, so you can file future bankruptcy forms online. Fax filing isn’t allowed.

The Rhode Island Bankruptcy Court is located in Providence. You can find detailed directions, including public transportation options on the court's website. Since the bankruptcy system is based on federal law, you’ll be going to a federal court. This means there will be a security checkpoint at the entrance with a metal detector, and you’ll have to show picture ID. Masks are required, and if you’re asked about vaccines, simply state that you are there for a “public service or benefit.” 

Once inside, head to the clerk's office. The clerk will assist you with filing your case. If you need someone else to drop off your documents, call the clerk at the bankruptcy court to make sure it’s okay. Filing options have fluctuated with the COVID-19 pandemic, so be sure to check the Rhode Island bankruptcy court website or call for the latest updates.

Mail Documents to Your Trustee

The court will assign a bankruptcy trustee to handle your Chapter 7 bankruptcy in Rhode Island as soon as you file your case with the court. Your bankruptcy trustee’s name and contact information will be on the notice of bankruptcy you receive after you file your case.

Trustees have significant powers, and they’ll be reviewing and verifying the financial information in your documents. They’ll work with you and your creditors to process your bankruptcy case. They’re also in charge of making decisions related to your property, assets, and payments.

You’ll have to give the bankruptcy trustee certain documents. If you don’t, your case could be dismissed. You need to send the following documents at least seven days before the 341 meeting (more on this below):

• Bank statements that show your transactions and account balance on the date of you filed your bankruptcy paperwork, and

• The last two federal tax returns you filed.

Usually, the trustee will mail you a letter letting you know what documents you need to provide. This is generally to confirm your financial situation or to see what assets or money you might have available. A request doesn’t necessarily mean your case is in trouble, it just means the trustee is checking the math.

Take a Debtor Education Course

After filing Chapter 7 in Rhode Island, you must take a debtor education course that focuses on financial management. You must take this course within 60 days of your 341 meeting. The debtor education course is different than the credit counseling course, but there are some similarities. As with the credit counseling course, the financial management course must be from an approved provider.

The course typically takes about 1-2 hours and can be done from the comfort of your own home. There is a small fee for the course. When you’re done, it's important to let the court know you completed the course by sending them your completion certificate. The course provider may file the certificate with the court for you. Alternatively, you can complete and file Form 423 after you complete the class. Rhode Island allows you to file your certificate online.

When you file your certificate for your second financial course in Rhode Island, you’re letting the court know that you’re ready to close your bankruptcy case and receive your discharge. If you don’t take the course, you’re not eligible for a bankruptcy discharge and you won’t get the fresh start you’re looking for.

Attend Your 341 Meeting

The 341 meeting is also called the meeting of creditors or creditors' meeting. It may sound stressful, but it’s often one of the easiest parts of the Rhode Island bankruptcy process. The 341 meeting is an opportunity for the trustee to ask you questions that they’re required to ask everyone who files a Chapter 7 bankruptcy in Rhode Island.

While creditors are invited to attend the meeting and ask questions, this doesn’t typically happen. The 341 meeting takes place approximately 20-40 days after you file your case, but you’ll be notified by the court well before then. As of January 2022, 341 meetings in Rhode Island are still being held by telephone or video conference due to COVID-19.

The Rhode Island bankruptcy court website has a calendar you can check that has more information on the 341 meeting. You must show the trustee your government-issued picture ID and acceptable proof of your Social Security number, such as your original Social Security card or a W-2. You must provide these documents at least one day before the scheduled 341 meeting.

If you have an in-person meeting, try to get to the courthouse early so you have time to park and deal with metal detectors and security. After the 341 meeting, you’ll hear from the trustee, but it could take weeks or months. 

Dealing with Your Car

If your car is paid off and you own it free and clear, then you can keep your car as long as it’s worth less than the available Rhode Island exemption, which is $4,000 for a vehicle.

If you’re still making auto loan payments, you have some options: 

• If you don't want to keep your car because your loan balance is high or your monthly payments are unaffordable, you can surrender your motor vehicle to the lender. If you do this, you’ll no longer owe any money.

• If you like your car and the loan, and you’re current on your payments, you can keep things the way they were by entering into a reaffirmation agreement. Similarly, if you’re leasing your car, you’re current on payments, and you want to keep your car lease, you can assume the lease and keep it as-is. If you want to cancel your car lease during bankruptcy, you can. It might make financial sense for you to cancel your expensive lease and buy a car after bankruptcy

If you want to keep your car, but you don’t like your loan you may be able to redeem your vehicle by paying the creditor the fair market value of the car. So, while you’ll still have to pay for your car, this relieves you from having to pay the loan according to its terms, and you could avoid substantially more debt.