Keep Some Property- Perhaps Everything 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:

$50,000 in equity in your home (after subtracting from the current market value, all liens such as mortgages and home equity loans), 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,

retirement accounts, clothing, tools for work, and a few other items that have separate exemptions,

and, at least $25,000 of other personal property for an individual, $50,000 for a married couple, which includes everything else that you own.

If you have additional property that you want to keep, you may qualify for a chapter 13 bankruptcy, which involves making monthly payments, usually to pay part of your debts.

An individual can earn over $46,000 before it becomes an issue, and a married couple can earn over $60,000, or more if you have children, without having to pay dischargeable debts. For people whose incomes are higher, they may still qualify for a chapter 7, and, if not, they 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 state allows you to use the federal bankruptcy exemptions.

Contact the Law Office of James C. Reed, P.A.

For a free initial evaluation of your bankruptcy matter, contact me or call my office at 302-727-0236 (toll-free at 888-844-1848). I maintain flexible office hours to accommodate your needs. My office is handicapped-accessible.

James C. Reed, P.A.
6 Century Plaza, 19633 Blue Bird Lane, Suite 6
Rehoboth Beach, DE 19971
Phone: 302-727-0236
Toll Free: 888-844-1848
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