Phone: (302) 227-2477
Keep Most of the Property that You Own
"Exemptions" is the term for property that you can keep without having to pay your creditors.Delaware's exemptions are as follows:
You can have, and keep, the following property and still discharge (eliminate) debts, without paying anything on unsecured dischargeable debts:
- $100,000 of equity in your home (after subtracting from the current market value, all liens such as mortgages and home equity loans); or $125,000 of equity for people who are disabled and totally unable to work or married couples where one spouse is over 65 years old, and for everyone starting in 2012, plus a vehicle with $15,000 of equity (current retail value of the used car, minus your car loan, equals your equity), and a second vehicle with $15,000 of equity for a married couple, plus
- retirement accounts, if they are IRS qualified, or regulated, accounts,
- clothing, tools for work, and a few other items that have separate exemptions, and
- at least $25,500 of other personal property for an individual, $51,000 for a married couple, which includes anything else that you own, except equity in your home.
An individual can earn at least $48,415 year before it becomes an issue, and a married couple can earn at least $64,432, or more if you have children or other dependents, without having to pay anything on dischargeable debts. For people whose incomes are higher, they may still qualify for a chapter 7, and, if not, you may qualify for a chapter 13.
If you have lived in Delaware for two years, Delaware's exemptions apply. If you have not lived in Delaware for two years, the bankruptcy exemptions for the state where you lived previously will generally apply. Frequently, the law of that other state allows you to use the federal bankruptcy exemptions.
This site is intended for general information purposes and to give you some basic information about bankruptcy law. It is not legal advice. For legal advice you need to contact me and schedule an appointment so that I can determine how the law applies to you and whether there are exceptions that apply in your case.
James C. Reed P.A. is a debt relief agency. I seek debt relief for my clients and, where appropriate, file for bankruptcy relief under the U.S. Bankruptcy Code.
Contact the Law Office of James C. Reed, P.A.
For a free initial evaluation, contact me or call my office at 302-227-2477. I keep flexible office hours to accommodate your needs and provide a handicapped-accessible environment for our clients.
At the law office of James C. Reed, in Rehoboth Beach, we represent clients throughout lower Delaware, including Georgetown 19947, Angola 19966, Bethany Beach 19930, Bethel 19931, Blades, Bridgeville 19933, Clarksville 19970, Dagsboro 19939, Delmar 19940, Dewey Beach 19971, Ellendale 19941, Fenwick Island 19944, Frankford 19945, Georgetown 19947, Greenwood 19950, Gumboro, Harbeson 19951, Laurel 19956, Lewes 19958, Lincoln 19960, Longneck 19966, Milton 19968, Milford 19963, Millsboro 19966, Millville 19967, Nassau 19969, Ocean View 19970, Seaford 19973, Selbyville 19975, Slaughter Beach 19963, South Bethany 19930, Primehook Beach, Bowers Beach, Felton 19943, Frederica 19946, Harrington 19952, Houston 19954 Camden 19934, Wyoming 19934, Magnolia 19962, Frederica 19946, and Dover 19901; in Sussex County and Kent County.