{"id":286841,"date":"2021-04-15T14:50:08","date_gmt":"2021-04-15T19:50:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/delaware-bankruptcy-exemptions-and-law.html"},"modified":"2021-04-23T09:38:08","modified_gmt":"2021-04-23T14:38:08","slug":"delaware-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/delaware-bankruptcy-exemptions-and-law.html","title":{"rendered":"Delaware Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Delaware Bankruptcy Exemptions and Law<\/h1>\n
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\n By J.P. Finet, J.D.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Most Americans are terrified by the thought of bankruptcy, even if they are deep in debt and see no way out. While things may be going badly, they believe that filing for bankruptcy will just make a bad situation worse and cause them to lose what little they still have. This is not true.<\/i><\/blockquote>\r\n

How Can Bankruptcy Help?
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If you are drowning in debt, bankruptcy is intended to provide you with a lifeline that protects you from your creditors and their collections agencies while you either pay off your debt or get rid of it entirely. The state of Delaware also has special rules for bankruptcy filers that allow you to protect some of your property from creditors so you can use it to move on with your life after bankruptcy. Many debtors are able to keep most of their property.
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<\/a>Delaware Bankruptcy Law<\/h2>\r\n

While all of the U.S. Bankruptcy Courts are governed by the U.S. Bankruptcy Code<\/a>, each state is allowed to implement its own rules regarding which property filers can protect. Delaware has enacted its own laws<\/a> governing this \u201cexempt" property that can’t be taken away from you during bankruptcy. There are also federal exemptions<\/a> provided for in the Bankruptcy Code, but you must use the state rules if you file in Delaware. More on this below. First, let’s cover some basics on filing for bankruptcy in Delaware.<\/p>\r\n

Can I File for Bankruptcy in Delaware?<\/h2>\r\n

In most cases, you can file for bankruptcy in Delaware if you have resided there more than anywhere else for the previous six months. But to take advantage of the state’s bankruptcy exemptions, you must have resided there for two years prior to filing.<\/p>\r\n

To file under Chapter 7, you will need to show that you meet Delaware’s income requirements under one of two means tests. Under the first means test, you qualify to file in the state if your income is below the state median the size of your household. According to U.S. Census data<\/a>, Delaware’s median income by household size was:<\/p>\r\n