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 inside a bankruptcy or insolvency case.

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)). The opening words of the subsection set the boundary of the entire exemption: Section 4914(c) applies "in any federal bankruptcy or state insolvency proceeding," and nowhere else. This is a meaningful change from Delaware's past, when the state offered no general bankruptcy homestead and relied on small statutory allowances.

Outside a bankruptcy or insolvency case, Delaware has no general homestead exemption. Under 10 Del. C. 4901, lands and tenements "may be seized and sold upon judgment and execution obtained" when no sufficient personal estate can be found, and that section carries no equity carve-out for a home. An ordinary judgment creditor is not held off by the $200,000 figure. Only the smaller general exemptions in 10 Del. C. 4902 and 4903 apply to execution and attachment.

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 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 over time.

Motor vehicle, tools, and personal property

These figures carry the same limit as the homestead. Section 4914(b) and (c) both open with the words "in any federal bankruptcy or state insolvency proceeding," so they exempt property from a bankruptcy or insolvency estate rather than shielding it from creditors generally. In such a proceeding, 10 Del. C. 4914(c)(2) exempts a vehicle and tools of the trade necessary for employment up to $25,000 each, and 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.

The older execution statutes are what applies outside bankruptcy, and they are far smaller. Section 4902 exempts specific articles from execution or attachment, 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 filings for a presumption of abuse. 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, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7; above it, a second disposable-income calculation determines whether a presumption of abuse arises or you are directed to Chapter 13.

For cases filed on or after July 15, 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. With exemptions that have changed over time and means-test figures that shift, let a Delaware lawyer check your equity and income against the current numbers in a free bankruptcy evaluation (attorney advertising).

Frequently Asked Questions

Does Delaware use state or federal bankruptcy exemptions?

Delaware uses state exemptions only. It opted out of the federal scheme, so under 10 Del. C. 4914(a) a Delaware-domiciled debtor cannot elect the federal 11 U.S.C. 522(d) exemptions and must use Delaware's list.

What is the homestead exemption in Delaware?

Delaware protects up to $200,000 of equity in a principal residence, including a manufactured home, under 10 Del. C. 4914(c)(1), but only in a federal bankruptcy or state insolvency proceeding. Section 4914(c) says so in its opening words. Delaware has no general homestead exemption outside such a proceeding: under 10 Del. C. 4901 a judgment creditor may have lands and tenements seized and sold on judgment and execution, with no equity carve-out for a home. There is no acreage rule. Confirm the current figure before relying on it.

What is the Delaware median income for the means test?

For cases filed on or after July 15, 2026, the U.S. Trustee Program lists Delaware median family income as $69,515 for one earner, $94,877 for two, $111,273 for three, and $132,244 for four, plus $11,100 for each additional person. These figures update about twice a year.

Will I lose my house or car if I file bankruptcy in Delaware?

Not automatically. Whether you keep a home or vehicle depends on your equity, the exemption amounts, and whether you are current on secured payments. Delaware's bankruptcy exemptions protect up to $200,000 of home equity and a vehicle up to $25,000, and those amounts apply in a bankruptcy or insolvency case rather than against an ordinary judgment creditor. This is general information, not advice about your specific case.

How much is the Delaware motor vehicle exemption?

In a federal bankruptcy or state insolvency proceeding, Delaware exempts a vehicle up to $25,000, and tools of the trade up to $25,000, under 10 Del. C. 4914(c)(2). There is no choice of a separate federal vehicle figure because Delaware opted out of the federal exemptions. Section 4914 does not apply outside bankruptcy or insolvency.

Where do I file for bankruptcy in Delaware?

In the U.S. Bankruptcy Court for the District of Delaware in Wilmington. Delaware is a single federal district, so there is no separate division to select by county.

Does Delaware have a wildcard exemption?

In a federal bankruptcy or state insolvency proceeding, Delaware allows an aggregate $25,000 in personal property or non-residence real property under 10 Del. C. 4914(b), which works much like a wildcard. Outside such a proceeding only the smaller general exemptions apply, including a $500 head-of-family allowance under 10 Del. C. 4903. Because Delaware opted out, the federal wildcard is not available.

What debts cannot be discharged in a Delaware bankruptcy?

The non-dischargeable categories are federal and apply nationwide. They generally include most student loans, recent income taxes, child support and alimony, and debts from fraud. Most credit card and medical debt is dischargeable.