Bankruptcy in Delaware (2026): Exemptions & Means Test

Bankruptcy is governed by federal law, but the property you can keep depends on your state's exemption rules. Delaware has opted out of the federal bankruptcy exemptions, so Delaware filers must use the state's own exemption list. For most of its history Delaware offered little or no homestead protection in bankruptcy, but the principal-residence exemption has grown over time and now reaches $200,000.

This guide is part of our Bankruptcy by State series. It is general legal information, not legal advice, and the figures below are amended periodically, so confirm current amounts before relying on them.

Does Delaware use state or federal bankruptcy exemptions?

Delaware is an opt-out state. Section 522(b) of the Bankruptcy Code lets each state require its residents to use state exemptions instead of the federal set, and Delaware has done so. Under 10 Del. C. 4914(a), an individual debtor domiciled in Delaware is not authorized to elect the federal exemptions in 11 U.S.C. 522(d) and may exempt only the property described in Delaware law. There is no choice to make; the state list controls.

Residency rules under 11 U.S.C. 522(b)(3) generally require domicile in Delaware for the 730 days before filing to use Delaware's exemptions; otherwise an earlier state's exemptions may apply.

Delaware homestead exemption

Delaware protects equity in a debtor's principal residence, including a manufactured home, up to $200,000 (10 Del. C. 4914(c)(1)). This is a meaningful change from Delaware's past, when the state offered no general bankruptcy homestead and relied on small statutory allowances. The exemption has been raised through successive amendments to Section 4914.

A few limits apply. The protection covers the principal residence only, and 10 Del. C. 4914(e) bars the homestead exemption for a debtor whom the bankruptcy court finds owes a debt arising from securities-law violations, fiduciary fraud, or certain criminal acts that caused serious physical injury or death in the preceding five years. In a joint case the statute caps the residence figure at $200,000 in total, while the separate vehicle, tools, and personal-property amounts apply per debtor.

Delaware does not use an acreage rule, and unlike Florida or Texas the protection is a fixed dollar cap rather than unlimited equity. Confirm the current figure before relying on it, because the amount has been amended repeatedly.

Motor vehicle, tools, and personal property

Under 10 Del. C. 4914(c)(2), Delaware exempts a vehicle and tools of the trade necessary for employment up to $25,000 each. Section 4914(b) adds an aggregate $25,000 in other personal property or in equity in real property that is not the principal residence, which functions much like a wildcard.

Older execution statutes layer in smaller items. Section 4902 exempts specific articles such as the family Bible, school books, family pictures, wearing apparel, and limited trade tools, and Section 4903 gives a head of family an additional $500 in personal property of the debtor's choosing. Delaware also protects retirement plans, life insurance, and annuity contracts under 10 Del. C. 4915.

The Chapter 7 means test in Delaware

The means test screens Chapter 7 eligibility. Step one compares your household's annualized income over the six months before filing to the Delaware median family income for your household size as published by the U.S. Trustee Program. At or below the median, you generally pass; above it, a second disposable-income calculation determines whether you can still file Chapter 7 or are directed to Chapter 13.

For cases filed on or after April 1, 2026, the Delaware median family income figures are:

• 1 earner: $69,515
• 2 people: $94,877
• 3 people: $111,273
• 4 people: $132,244

Add $11,100 for each household member beyond four. The U.S. Trustee Program updates these figures about twice a year, so check the current table for your filing date.

Chapter 7 vs. Chapter 13 and the automatic stay

Chapter 7 is liquidation. A trustee may sell non-exempt property to pay creditors, and most remaining unsecured debt is discharged, typically within four to six months. It fits filers with limited non-exempt assets and mostly unsecured debt.

Chapter 13 is reorganization. You keep your property and repay part or all of what you owe through a three-to-five-year plan, which can help homeowners catch up on a mortgage or filers whose income is too high for Chapter 7.

Either filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection activity, including foreclosure, wage garnishment, and collection calls, while the case is pending.

Where you file in Delaware

Delaware is a single federal judicial district. All cases are filed in the U.S. Bankruptcy Court for the District of Delaware, located in Wilmington. The District of Delaware is also a major venue for large corporate Chapter 11 cases, but individual consumer filers use the same court. A credit-counseling course from an approved provider is required before filing, and a debtor-education course before discharge.

What bankruptcy can and cannot do

Most unsecured debts, such as credit cards, medical bills, and personal loans, can be discharged. Several categories generally cannot, including most student loans, recent income taxes, child support and alimony, and debts based on fraud. Because Delaware's exemptions are fixed by statute and have changed over time, and because the means-test figures shift, many filers consult a Delaware bankruptcy attorney before deciding how to proceed.