Rhode Island Bankruptcy Exemptions
Burden of proof claiming Rhode Island bankruptcy exemptions following objection
The temptation to creatively claim Rhode Island bankruptcy exemptions for nonexempt property frequently results in objections, which in turn, may require a hearing to resolve. All interested parties tend to overstate and assume all gray area issues in their own favor. This is the nature of disputes and law suits, and certainly, assumptions are necessary in almost all cases. The bright line used for consideration of disputes when claiming exemptions, requires substantial justification when requested by the court. Good faith assumptions are necessary, while bad faith assumptions and unjustifiable claims are reviled. The line may be thin, and the most successful debtors and creditors flirt dangerously with noncompliance.
Defending Rhode Island exemptions following a creditor objection
The burden of proof is assigned by Rule 4003(c), Fed. Rules of Bk. Proc. in the event any creditor files an objection to Rhode Island bankruptcy exemptions claimed by the debtor. As the objecting party, the creditor must prove, through submission of clear and convincing evidence, that the debtor is not entitle to receive the exemption claimed. As a presumption of law, all property claimed as exempt is assumed exempt, unless and until proven otherwise. Evidence offered may include sworn oral testimony, documents, records, and any other item of evidence that conform to the Federal Rules of Evidence.