{"id":372407,"date":"2016-03-31T21:34:51","date_gmt":"2016-04-01T02:34:51","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/delaware-law\/delaware-homestead-laws.html"},"modified":"2026-08-26T16:10:05","modified_gmt":"2026-08-26T21:10:05","slug":"delaware-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/delaware-law\/delaware-homestead-laws.html","title":{"rendered":"Delaware Homestead Laws"},"content":{"rendered":"\n
\n

Delaware Homestead Laws<\/h1>\n\n
\n
\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

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
\n

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\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

The Delaware<\/span> homestead exemption<\/span> is a legal provision that protects up to $200,000 of equity in a primary residence<\/span> during bankruptcy. This law prevents bankruptcy trustees from selling a homeowner<\/span>‘s property to settle debts with creditors, provided the property is their main residence. Eligible Delaware<\/span> residents must claim the exemption on their petition and submit proof of ownership, valuation<\/span>, and mortgage status.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

A common fear for homeowners<\/span> filing bankruptcy is having their house sold to pay off creditors. While the possibility exists, Delaware<\/span> provides protections that can keep filers from losing their primary residence<\/span>. This is known as a homestead exemption<\/span>, a bankruptcy exemption that can help\u00a0property owners<\/span>\u00a0keep their\u00a0real estate<\/span>\u00a0and\u00a0personal property<\/span>\u00a0in the event of\u00a0bankruptcy.<\/p>\n

This article explains how the\u00a0homestead exemption<\/span>\u00a0works in\u00a0Delaware<\/span>, including the\u00a0exemption amount<\/span>\u00a0and how to apply for it. If you\u2019re thinking about filing bankruptcy and aren\u2019t sure if you\u2019ll be able to keep your house, contact a Delaware<\/span> bankruptcy lawyer<\/a> for legal advice.<\/p>\n

What Is the Homestead Exemption<\/span> and How Can it Help You?<\/h2>\n

When you file bankruptcy, your assets are at risk of being sold off. If the trustee believes they can pay some or most of your debts by selling your house, they may attempt to force you to sell it.<\/p>\n

If you don\u2019t have any equity in your home, there\u2019s no point in selling it. Any money the trustee would get from a forced sale<\/span> of your principal residence<\/span> would go to the mortgage lender, with nothing left to pay your other creditors.<\/p>\n

For those with significant equity in their home, the trustee may decide to sell it. Any money left after your debts are paid goes to you. That\u2019s not an ideal outcome. The whole point of filing bankruptcy is to get a fresh start, not to lose your house and other property.<\/p>\n

Delaware<\/span>\u00a0offers bankruptcy filers protection from losing their house, motor vehicle, and other assets. This protection comes in the form of the homestead exemption<\/span>, which protects the equity you have in your home up to $200,000. If you have $250,000 equity in your primary residence<\/span>, the exemption protects up to $200,000. When you subtract the exemption amount<\/span> from your total equity, there\u2019s $50,000 available for creditors.<\/p>\n

Theoretically, the trustee may still decide to sell your home and use the $50,000 to pay off creditors. However, your bankruptcy attorney may be able to convince the trustee to let you keep your house and negotiate a settlement with your creditors instead.<\/p>\n

Delaware<\/span> Homestead Exemption<\/span>: The Basics<\/h2>\n

Delaware<\/span> is one of the states that offers debtors protection from losing their home in bankruptcy. The Delaware<\/span> homestead exemption<\/span> protects your equity, up to $200,000. The sale of a home is often part of a Chapter 7 bankruptcy case, so the exemption can help prevent the trustee from selling your house to pay creditors.<\/p>\n

You must claim the homestead exemption<\/span> when you file your bankruptcy petition and submit certain documentation to support your exemption application<\/span>. Under Delaware<\/span> law<\/span>, this includes:<\/p>\n