If you’re considering filing bankruptcy in Providence, RI, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Providence, Rhode Island, or anywhere else in the United States, is determined by various factors and is subject to federal bankruptcy laws. Bankruptcy is a legal process that allows individuals and businesses to discharge or restructure their debts when they are unable to meet their financial obligations. While the specific qualifications may vary depending on the type of bankruptcy you’re considering, primarily Chapter 7 and Chapter 13 bankruptcies, there are some general criteria that apply.

1. Type of Bankruptcy:
   • Chapter 7: To qualify for Chapter 7 bankruptcy, you must pass the means test. This test compares your income and expenses to determine if you have sufficient disposable income to repay your debts. If your income is below the median income for your household size in Rhode Island, you generally pass the means test and can file for Chapter 7. However, if your income is above the median, you may still qualify if you can demonstrate that you have little to no disposable income after covering essential expenses.
   • Chapter 13: Chapter 13 bankruptcy does not rely on the means test. Instead, it involves creating a repayment plan to pay off a portion of your debts over three to five years. If you have a regular source of income and can commit to the repayment plan, you may qualify for Chapter 13.
2. Residency Requirement:To file for bankruptcy in Providence, you typically must be a resident of Rhode Island or have a significant connection to the state, such as owning property or conducting business there.
3. Credit Counseling:Before filing for bankruptcy, you are generally required to complete credit counseling from an approved agency. This counseling helps you explore alternatives to bankruptcy and understand the implications of filing.
4. Prior Bankruptcy Discharges:If you’ve received a bankruptcy discharge in the past, the timing of when you can file another bankruptcy depends on the type of bankruptcy you previously filed and the type you want to file now. For example, if you previously filed for Chapter 7 and received a discharge, you must wait eight years before filing for Chapter 7 again. If you previously filed for Chapter 13 and received a discharge, you must wait two years before filing for Chapter 13 again.
5. Fraudulent Activities:If you’ve engaged in fraudulent activities related to your finances or bankruptcy, such as hiding assets or providing false information, you may not qualify for bankruptcy, and you could face legal consequences.
6. Mandatory Credit Counseling and Financial Management Courses:After filing for bankruptcy, you must complete mandatory debtor education courses to receive a discharge of your debts. Failing to complete these courses may impact your eligibility for a discharge.
7. Legal Representation:While it is not a strict qualification, it is highly advisable to seek legal representation when filing for bankruptcy in Providence, RI. An experienced bankruptcy attorney can guide you through the process, ensure you meet all requirements, and help protect your assets.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Providence, RI?

While you are not legally required to hire a lawyer to file for bankruptcy in Providence, Rhode Island, it is highly advisable to seek legal representation when considering bankruptcy. Bankruptcy is a complex legal process with significant financial and legal implications, and having an experienced bankruptcy attorney can greatly benefit you in the following ways:

1. Expertise and Experience: Bankruptcy laws are intricate, and they can vary from one jurisdiction to another. An attorney who specializes in bankruptcy law is well-versed in the local rules and procedures specific to Providence and Rhode Island. They can provide you with tailored advice and guidance, ensuring you navigate the process correctly and efficiently.
2. Assessing Your Options: There are different chapters of bankruptcy, including Chapter 7 and Chapter 13, each with its own eligibility criteria and implications. A bankruptcy attorney can evaluate your financial situation and help you choose the most appropriate chapter for your circumstances. They can also explore alternatives to bankruptcy and advise you on whether bankruptcy is the best solution for your debt problems.
3. Preparing and Filing Documents: Bankruptcy involves extensive paperwork and documentation, including income statements, asset listings, debt schedules, and more. An attorney can help you gather and complete these documents accurately, minimizing the risk of errors or omissions that could delay your case or lead to complications.
4. Protection of Assets: Depending on the type of bankruptcy you file, you may have the opportunity to protect certain assets through exemptions. An attorney can help you maximize the use of exemptions to safeguard your property and assets while still discharging eligible debts.
5. Negotiating with Creditors: Your attorney can negotiate with creditors on your behalf, potentially reducing the amount you owe or arranging more favorable terms for repayment in a Chapter 13 bankruptcy. They can also handle creditor harassment and collection efforts, providing you with peace of mind during a challenging time.
6. Avoiding Common Pitfalls: Bankruptcy is riddled with potential pitfalls, and a knowledgeable attorney can help you avoid them. They can ensure that you comply with all legal requirements, such as completing mandatory credit counseling and financial management courses, which are essential for obtaining a discharge of your debts.
7. Legal Protections: Bankruptcy laws offer certain legal protections and rights to debtors. An attorney can ensure that your rights are upheld throughout the process, protecting you from any potential abuses by creditors or mistakes in the legal system.
8. Court Representation: If your case requires a court appearance or if creditors challenge your bankruptcy, having an attorney represent you in court is invaluable. They can argue on your behalf and address any issues that may arise during the proceedings.
9. Post-Bankruptcy Planning: After your bankruptcy is complete, an attorney can provide guidance on rebuilding your credit and making sound financial decisions to ensure a more stable financial future.
10. Peace of Mind: Perhaps most importantly, hiring an attorney provides peace of mind during a stressful and emotionally challenging time. Knowing that you have a legal professional handling your case can alleviate anxiety and help you focus on the process of financial recovery.

While it is not mandatory to hire a lawyer to file for bankruptcy in Providence, RI, doing so is strongly recommended due to the complexity of the bankruptcy process and the potential legal and financial consequences. A skilled bankruptcy attorney can guide you through the process, protect your rights, and help you achieve the best possible outcome for your unique financial situation.

Cost to File Chapter 7 Bankruptcy in Providence, RI

The cost to file Chapter 7 bankruptcy in Providence, Rhode Island, involves several fees and expenses. These costs can add up, but they are essential for initiating the bankruptcy process. Here’s a breakdown of the key expenses associated with filing Chapter 7 bankruptcy:

1. Filing Fee: The primary cost associated with filing Chapter 7 bankruptcy is the filing fee paid to the bankruptcy court. However, it’s essential to note that court fees can change over time, so it’s advisable to check the current fee schedule on the U.S. Bankruptcy Court for the District of Rhode Island’s website or by contacting the court directly.
2. Credit Counseling and Financial Management Courses: Before filing for Chapter 7 bankruptcy, you are required to complete credit counseling from an approved agency. There is typically a fee associated with this counseling, which can vary depending on the agency and your location. Similarly, you must complete a financial management course after filing, which also incurs a separate fee.
3. Attorney’s Fees: While you are not required to hire an attorney to file for Chapter 7 bankruptcy, many individuals choose to do so to ensure that the process goes smoothly and to receive legal guidance. Attorney fees can vary widely depending on the complexity of your case and the attorney’s experience. It’s important to discuss fees upfront with your chosen attorney and inquire if they offer payment plans or other arrangements to accommodate your financial situation.
4. Credit Report and Miscellaneous Costs: You may need to obtain a copy of your credit report to ensure that all of your debts are included in your bankruptcy petition. Additionally, there may be other miscellaneous costs associated with gathering necessary documents, such as copies of financial records or notary fees.
5. Trustee’s Fee: In a Chapter 7 bankruptcy case, a bankruptcy trustee is appointed to oversee the process. The trustee is compensated for their services through a fee collected from the assets of the bankruptcy estate. This fee is typically a percentage of the assets the trustee administers, so it is not a direct out-of-pocket cost for the debtor.
6. Exemption Costs: If you have non-exempt property that you wish to keep, you may need to pay for appraisals or valuations of these assets. This is necessary to determine the value of your non-exempt property and assess whether you can protect it using available exemptions.

The total cost of filing Chapter 7 bankruptcy in Providence, RI, can vary widely depending on your individual circumstances, whether you hire an attorney, and other factors. It’s essential to consult with a bankruptcy attorney to understand the specific costs involved in your case and explore your options for managing these expenses.

Cost to File Chapter 11 Bankruptcy in Providence, RI

Filing for Chapter 11 bankruptcy in Providence, Rhode Island, can be a complex and costly process, primarily designed for businesses and individuals with substantial debts who seek to reorganize their financial affairs. The cost of filing Chapter 11 bankruptcy includes various fees and expenses, and it can be substantial. Here’s a breakdown of the key costs associated with filing Chapter 11 bankruptcy:

1. Filing Fee: The primary expense for filing Chapter 11 bankruptcy in Providence, RI, is the filing fee paid to the bankruptcy court. The filing fee can be significant, and the exact amount may vary over time. It’s crucial to check the current fee schedule on the U.S. Bankruptcy Court for the District of Rhode Island’s website or contact the court directly for the most up-to-date information.
2. Attorney’s Fees: Chapter 11 bankruptcy is highly complex and typically requires the expertise of an experienced bankruptcy attorney. Attorney fees for Chapter 11 cases can vary significantly based on the complexity of the case and the attorney’s experience. These fees can range from several thousand dollars to tens of thousands of dollars, or more, depending on the circumstances. Many attorneys charge both hourly rates and may require a retainer upfront.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office may assess quarterly fees based on the debtor’s disbursements and income. These fees are calculated on a sliding scale and are subject to change annually. The purpose of these fees is to help fund the administrative costs of the U.S. Trustee’s Office.
4. Miscellaneous Costs: There are various additional costs associated with a Chapter 11 bankruptcy filing, including fees for appraisals, valuation experts, accountants, and other professionals who may be needed to assist in the reorganization process. These costs can vary widely depending on the complexity of your financial situation and the need for specialized expertise.
5. Credit Counseling and Financial Management Courses: As with other bankruptcy chapters, you will be required to complete credit counseling and financial management courses, which typically involve fees paid to approved agencies.
6. Plan Confirmation Expenses: Developing and obtaining approval for a Chapter 11 reorganization plan can be a lengthy and costly process. You may incur additional legal and administrative expenses during the plan confirmation process.

Given the high costs and complexities involved in Chapter 11 cases, it is strongly recommended that you consult with an experienced bankruptcy attorney in Providence, RI, before proceeding. An attorney can help you assess your eligibility, navigate the complexities of the Chapter 11 process, and provide guidance on managing the associated costs. Additionally, they can help you develop a reorganization plan that aligns with your financial goals and maximizes your chances of success.

Cost to File Chapter 13 Bankruptcy in Providence, RI

The cost to file Chapter 13 bankruptcy in Providence, Rhode Island, includes several fees and expenses. Chapter 13 bankruptcy is designed for individuals with regular income who want to restructure their debts and create a repayment plan. Here’s a breakdown of the key costs associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The primary expense for filing Chapter 13 bankruptcy is the filing fee paid to the bankruptcy court. It’s crucial to verify the current fee on the U.S. Bankruptcy Court for the District of Rhode Island’s website or by contacting the court directly.
2. Attorney’s Fees: While you can file for Chapter 13 bankruptcy without an attorney, many individuals choose to hire an experienced bankruptcy attorney to navigate the process successfully. Attorney fees can vary based on the complexity of your case, your location, and the attorney’s experience. Typically, attorneys charge both upfront retainers and ongoing fees throughout the duration of the repayment plan.
3. Credit Counseling and Financial Management Courses: Like other bankruptcy chapters, Chapter 13 bankruptcy requires you to complete credit counseling from an approved agency before filing. There is typically a fee associated with this counseling. Additionally, you must complete a financial management course after filing, which also incurs a separate fee.
4. Trustee’s Fee: In Chapter 13 cases, a bankruptcy trustee is appointed to oversee the repayment plan. The trustee’s fee is collected as a percentage of the payments made to creditors under the plan. This fee is typically reasonable and is built into your monthly plan payments.
5. Miscellaneous Costs: There may be miscellaneous costs associated with your Chapter 13 case, such as costs related to obtaining credit reports, notary fees, and document preparation fees. These expenses can vary depending on your specific circumstances.
6. Plan Confirmation Expenses: Developing and obtaining court approval for your Chapter 13 repayment plan may involve additional legal and administrative expenses. These costs can include attorney fees for plan preparation, court filing fees for plan confirmation, and related expenses.

If you are concerned about affording the filing fee and attorney’s fees upfront, some attorneys offer payment plans, and you may also be eligible for a fee waiver for the filing fee if your income falls below a certain threshold.

Reliable Bankruptcy Attorneys in Providence, RI

Below is a list of reputable bankruptcy attorneys in Providence, RI. They can help you with both personal and business bankruptcy information.

Attorney Mark Buckley, CFP
1536 Westminster St, Providence, RI 02909, United States

Robert B Jacquard, Esq
231 Reservoir Ave, Providence, RI 02907, United States

The Law Offices of James T. Marasco
617 Smith St, Providence, RI 02908, United States

Pitts & Burns Attorneys at Law
635 Killingly St, Johnston, RI 02919, United States

Raskin & Berman
116 E Manning St, Providence, RI 02906, United States

Providence, RI Zip Codes We Proudly Serve:

02860, 02903, 02904, 02905, 02906, 02907, 02908, 02909, 02910, 02911, 02912, 02919, 02920

---