Delaware Bankruptcy Guide 2026
This content is for informational purposes only and does not constitute legal advice. Consult a licensed Delaware attorney for advice specific to your situation.
Filing for bankruptcy in Delaware can help you get a fresh financial start. This guide covers everything you need to know about Chapter 7 and Chapter 13 bankruptcy in Delaware courts.
Quick Facts: Bankruptcy in Delaware
| Requirement | Details | |
|---|---|---|
| Residency | Must live in Delaware for at least 91 of the last 180 days | |
| Where to File | U.S. Bankruptcy Court, District of Delaware | |
| Filing Fee | Chapter 7: $338 | Chapter 13: $313 |
| Credit Counseling | Required within 180 days before filing | |
| Means Test | Required to qualify for Chapter 7 | |
| Exemptions | Delaware allows state exemptions |
Types of Bankruptcy in Delaware
Chapter 7 Bankruptcy
What it is: Chapter 7 is a "liquidation" bankruptcy that eliminates most unsecured debts in about 4-6 months.
Best for:
- People with little to no assets
- Those whose income is below the Delaware median
- People who want a fresh start quickly
What happens:
- A trustee may sell non-exempt assets to pay creditors
- Most unsecured debts are discharged (eliminated)
- You keep exempt property
Chapter 13 Bankruptcy
What it is: Chapter 13 is a "reorganization" bankruptcy that sets up a 3-5 year repayment plan.
Best for:
- People with regular income
- Those who want to keep their home or car
- People who don't qualify for Chapter 7
What happens:
- You keep all your property
- You make monthly payments to a trustee
- Remaining debts are discharged after completing the plan
Do You Qualify for Chapter 7 in Delaware?
The Means Test
To file Chapter 7 in Delaware, your income must be below the Delaware median income OR you must pass the "means test" calculation.
Delaware Median Income (2024):
| Household Size | Annual Income |
|---|---|
| 1 person | $69,914 |
| 2 people | $87,458 |
| 3 people | $106,252 |
| 4 people | $127,054 |
| Each additional | +$9,900 |
If your income is BELOW these numbers: You likely qualify for Chapter 7.
If your income is ABOVE these numbers: You must complete the means test calculation (Form 122A-2).
Who Cannot File Chapter 7
- Filed Chapter 7 in the last 8 years
- Filed Chapter 13 in the last 6 years
- Recent bankruptcy dismissal within 180 days
- Attempting to defraud creditors
What Property Can You Keep in Delaware?
Delaware allows state exemptions under Title 10, Chapter 49.
Key Delaware Exemptions
| Property | Exemption Amount |
|---|---|
| Homestead | None (Delaware has no homestead exemption) |
| Motor Vehicle | Up to $15,000 in one vehicle |
| Household Goods | Up to $5,000 in furniture, appliances |
| Tools of Trade | Up to $1,500 in tools, implements |
| Jewelry | Up to $500 |
| Wages | 85% of earned but unpaid wages |
| Retirement Accounts | 401(k), IRA, pensions (generally exempt) |
| Public Benefits | Social Security, unemployment, veterans benefits |
| Workers' Compensation | Fully exempt |
| Personal Injury Recovery | Up to $10,000 |
The Filing Process: Step by Step
Step 1: Complete Credit Counseling
Before you can file, you must complete a credit counseling course.
- Where: Approved agencies at justice.gov/ust/eo/bapcpa/ccde
- Cost: $0-$50 (fee waivers available)
- Format: Online, phone, or in person
- Timing: Within 180 days BEFORE filing
Step 2: Gather Documents
Collect:
- Last 6 months of pay stubs
- Last 2 years of tax returns
- Bank statements for all accounts
- List of all debts (names, addresses, amounts)
- List of all assets
- Vehicle titles and registrations
- Mortgage statements
Step 3: Complete Bankruptcy Forms
Required forms:
- Voluntary Petition (Form B 101)
- Schedules A/B through J
- Statement of Financial Affairs (Form B 107)
- Means Test forms (B 122A-1, B 122A-2 if needed)
- Statement of Intention (Form B 113)
Step 4: File Your Petition
Where to file:
U.S. Bankruptcy Court, District of Delaware
- 824 N. Market Street, Wilmington, DE 19801
- Phone: (302) 573-6174
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
Filing fee:
- Chapter 7: $338
- Chapter 13: $313
- Fee waiver applications available
Step 5: Attend the 341 Meeting
When: 3-6 weeks after filing
What to bring:
- Photo ID
- Social Security card
- Bank statements
- Tax returns
- Pay stubs
Step 6: Complete Debtor Education
Required for discharge:
- Must complete AFTER filing
- Find approved provider at justice.gov/ust/eo/bapcpa/ccde
- File certificate with court
Step 7: Receive Your Discharge
When: 60-90 days after 341 meeting
What it means:
- Most unsecured debts eliminated
- Creditors cannot pursue you
- Fresh financial start
What Debts Are NOT Discharged?
Bankruptcy does NOT eliminate:
- Student loans (except in rare hardship cases)
- Recent taxes (last 3 years)
- Child support and alimony
- Debts from fraud
- Intentional injury debts
- Criminal fines and restitution
- Debts not listed in bankruptcy
Legal Aid Resources in Delaware
| Organization | Phone | Services |
|---|---|---|
| Community Legal Aid Society (CLASI) | (302) 575-0400 | Free bankruptcy help |
| CLASI Wilmington | (302) 575-0660 | New Castle County |
| CLASI Dover | (302) 674-8500 | Kent County |
| CLASI Georgetown | (302) 856-6490 | Sussex County |
| DE Bar Lawyer Referral | (302) 478-8850 | Low-cost consultations |
Next Steps
- Complete credit counseling — justice.gov/ust/eo/bapcpa/ccde
- Gather your documents — pay stubs, tax returns, debt list
- Consider your options — Chapter 7 vs. Chapter 13
- Consult an attorney — especially if you have significant assets
- File your petition — at the District of Delaware
Get Delaware Bankruptcy Documents
jurisdiction-correct Delaware bankruptcy documents from Jurist-Diction include Chapter 7 templates — starting at $97.
Templates are for informational purposes only and do not constitute legal advice. For legal advice, contact a licensed Delaware attorney or Community Legal Aid Society at (302) 575-0400.