Delaware Bankruptcy Exemptions

Delaware is an opt-out state, requiring the use of Delaware-specific exemptions. A critical point is Delaware’s global cap: a single filer may not exceed \$5,000 total in exemptions, and a married couple may not exceed \$10,000 total—even if the sums of individual category limits appear higher.

Always verify the latest amounts and statutes with an attorney, as exemption laws can be updated or interpreted differently over time.

Asset / Type of PropertyExemption DescriptionStatute / CodeNotes
Overall Exemption Limit\$5,000 total for a single person;\$10,000 total for married couple10 Del. C. § 4914Applies to **all** exemptions combined.
HomesteadEquity in real property or manufactured home (principal residence) up to \$125,000.In re Hovatter, 25 B.R. 123 (D. Del. 1982)Still subject to the global \$5k/\$10k cap.
Annuity Contract ProceedsUp to \$350/month.18 Del. C. § 2728
Fraternal Benefit Society BenefitsFully exempt.18 Del. C. § 6118
Group Life Insurance Policy / ProceedsFully exempt.18 Del. C. § 2727
Health or Disability BenefitsFully exempt.18 Del. C. § 2726
Life Insurance Proceeds (Anti-Creditor Clause)Exempt if the policy prohibits using proceeds for beneficiary’s creditors.18 Del. C. § 2729
Life Insurance Proceeds / AvailsGenerally exempt from claims.18 Del. C. § 2725
Property of Business PartnershipExempt from individual partner’s creditors.6 Del. C. § 1525
Kent County EmployeesExempt pension benefits.9 Del. C. § 4316
Police OfficersExempt benefits.11 Del. C. § 8803
State EmployeesExempt retirement/pension.29 Del. C. § 5503
Volunteer FirefightersExempt benefits.16 Del. C. § 6653
Bible, Books, Family PicturesThese items are exempt as personal property.10 Del. C. § 4902(a)
Burial PlotFully exempt.10 Del. C. § 4902(a)
Church Pew / Seat in Place of WorshipFully exempt.10 Del. C. § 4902(a)
Clothing (Includes Jewelry)Fully exempt as personal property.10 Del. C. § 4902(a)
Pianos & Leased OrgansFully exempt if personal property.10 Del. C. § 4902(d)
Sewing MachinesFully exempt.10 Del. C. § 4902(c)
Aid to the BlindExempt from creditors.31 Del. C. § 2309
Aid to Aged, Disabled, AFDC, General AssistanceFully exempt.31 Del. C. § 513
Unemployment CompensationFully exempt.19 Del. C. § 3374
Workers’ CompensationFully exempt.19 Del. C. § 2355
Tools, Implements, FixturesUp to \$75 in New Castle & Sussex Counties;\$50 in Kent County.10 Del. C. § 4902(b)Still subject to overall \$5k/\$10k cap.
Wages85% of earned but unpaid wages are exempt.10 Del. C. § 4913
Wildcard\$500 of any personal property, if head of family.10 Del. C. § 4903Again, cannot exceed the \$5k/\$10k total limit.

Disclaimer

The information provided here is for general educational purposes only and may not reflect current legal developments. Delaware’s \$5,000/\$10,000 overall cap is strictly enforced, even if individual category exemptions total more than that. Always consult a licensed Delaware bankruptcy attorney for guidance tailored to your circumstances.

Consult a Delaware Bankruptcy Attorney