Legislation to allow bankruptcy filers keep $500 of personal savings passes House of Representatives

PROVIDENCE, R.I. (WLNE)- Today the House of Representatives approved legislation that would allow those who file for bankruptcy to keep $500 of their personal savings. Representative Corvese, the sponsor of the bill, say it aims to provide financial securities to those facing financial difficulties.

The bill now faces a vote in the Senate.

“It does not serve the public good to create destitution. 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. Five hundred dollars is not much to a creditor, but it is enough to make sure a family has groceries between paychecks or can handle a car repair so they can continue to get to work,” said Representative Corvese (D-Dist. 55, North Providence).