Delaware Bankruptcy Laws
The bankruptcy process is protected by federal and state laws. Bankruptcy laws are different in every state and can be quite complex. Prior to deciding to file for bankruptcy, make sure you have all the information about how the laws will affect you. Get answers by talking to a local bankruptcy attorney. When you fill out the free form below, you can get a free case evaluation with an attorney in your area.
When you get to the point where you simply cannot make the payments on your debts and you are struggling to simply put food on the table, Delaware bankruptcy is designed to give you the breathing room you desperately need.
Delaware Bankruptcy Exemptions
Delaware bankruptcy laws put protections in place that limit what the courts may sell to pay back your creditors after you file for bankruptcy. Current Delaware bankruptcy exemptions are as follows:
- Up to $50,000 of equity in your home
- Church pew, family Bible and other library items, family pictures, burial plot and school books
- Clothing
- Tools for work, not exceeding $50 in Kent County or $75 in New Castle and Sussex Counties
- Up to $15,000 in tools of the trade needed for employment
- Up to $500 for other personal property
- Property in a business partnership
- Leased or hired pianos or organs
- 85 percent of wages or commissions
- Up to $5,000 in estate property
- Retirement plans
- Proceeds from an employee group life insurance product
- Proceeds from insurance
- Up to $350 per month for annuity contract proceeds
- Public assistance, including unemployment
- Worker’s compensation payments
- Up to $15,000 for any vehicles necessary for employment
If you have a car that still has a loan on it, you must reaffirm that loan with the lender. Failure to do so could mean repossession of the car, even if you continue your car payments.
Delaware Chapter 7 Bankruptcy Law
Debtors that make at or below the median income in their state can file Chapter 7 bankruptcy. This form of bankruptcy gives the bankruptcy trustee the right to sell all of the individual’s non-exempt assets to pay the creditors. Once the assets are gone, most debts, with the exception of voluntary or tax liens, are usually eliminated.
Delaware Chapter 13 Bankruptcy Law
Chapter 13 bankruptcy provides all court bankruptcy protection, but it does not eliminate debts. This form of Delaware bankruptcy requires the debtor to enter into a court-supervised repayment plan in an attempt to pay back the debt. However, during the time that the debtor is under court protection, creditors cannot take action against the borrower. Those who do not qualify for Chapter 7 must file Chapter 13.
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