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Bankruptcy

exemptions

Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Delaware, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Delaware does not allow debtors to use the federal bankruptcy exemptions; instead, they must use the state's specific exemptions. These exemptions include a homestead exemption, personal property exemptions, and exemptions for pensions, public benefits, tools of trade, wages, and insurance among others. The homestead exemption, for example, allows individuals to exempt up to $125,000 of equity in their residence. It's important for debtors to review Delaware's exemption statutes or consult with an attorney to understand which assets can be protected during the bankruptcy process and to ensure they are applying the exemptions correctly.

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Bankruptcy

exemptions

Individual & Family Legal Plan

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Delaware State Code

Delaware State Code

Bankruptcy

exemptions

Articles