The Delaware bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Delaware. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Delaware you may also use certain federal exemptions in addition to your Delaware exemptions.
A single person may exempt no more than $5000 total in all exemptions; a husband & wife may exempt no more than $10,000 total (10-4914).
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
| LIMITS | A single person may exempt no more than $5000 total in all exemptions; a husband & wife may exempt no more than $10,000 total. | 10-4914 |
HOMESTEAD | Equity in real property or equity in a manufactured home that is debtors principal residence not to exceed $125,000 | In re Hovatter, 25 B.R. 123 (D. Del. 1982) |
INSURANCE | Annuity contract proceeds to $350 per month | 18-2728 |
Fraternal benefit society benefits | 18-6118 | |
Group life insurance policy or proceeds | 18-2727 | |
Health or disability benefits | 18-2726 | |
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors | 18-2729 | |
Life insurance proceeds or avails | 18-2725 | |
MISC. | Property of business partnership | 6-1525 |
PENSIONS | Kent County employees | 9-4316 |
Police officers | 11-8803 | |
State employees | 29-5503 | |
Volunteer firefighters | 16-6653 | |
PERSONAL PROPERTY | Bible, books and family pictures | 10-4902(a) |
Burial plot | 10-4902(a) | |
Church pew or any seat in public place of worship | 10-4902(a) | |
Clothing, includes jewelry | 10-4902(a) | |
Pianos and leased organs | 10-4902(d) | |
Sewing machines | 10-4902(c) | |
PUBLIC BENEFITS | Aid to blind | 31-2309 |
Aid to aged, disabled, AFDC, general assistance | 31-513 | |
Unemployment compensation | 19-3374 | |
Workers' compensation | 19-2355 | |
TOOLS OF TRADE | Tools, implements and fixtures to $75 in New Castle and Sussex Counties; to $50 in Kent County | 10-4902(b) |
WAGES | 85% of earned but unpaid wages | 10-4913 |
WILD CARD | $500 of any personal property, except tools of trade, if head of family | 10-4903 |
For more information on filing bankruptcy in Delaware explore Delaware Bankruptcy Law.
