Delaware State Bankruptcy Exemptions
§ 4914. Exemptions in bankruptcy and insolvency
(a) In accordance with § 522(b) of the Bankruptcy Reform Act of 1978
(11 U.S.C. § 522(b)), in any bankruptcy proceeding, an individual
debtor domiciled in Delaware is not authorized or entitled to elect the federal
exemptions as set forth in § 522(d) of the Bankruptcy Reform Act of 1978
(11 U.S.C. § 522(d)) and may exempt only that property from the estate
as set forth in subsection (b) of this section.
(b) In any federal bankruptcy or state insolvency proceeding, an
individual debtor domiciled in Delaware shall be authorized to exempt from the
bankruptcy or insolvency estate, in addition to the exemptions made in this
subsection and in § 4915 of this title, property having an aggregate fair
market value of not more than $ 25,000.
(c) In any federal bankruptcy or state insolvency proceeding, an
individual debtor and/or such individual's spouse domiciled in Delaware shall
be authorized to exempt from the bankruptcy or insolvency estate, in addition
to the exemptions made in subsection (b) hereof and in § 4915 of this title,
the following:
(1) Equity in real property or equity in a manufactured home (as defined
in Chapter 70 of Title 25) which constitutes a debtors principal residence in
an aggregate amount not to exceed $ 50,000, and
(2) A vehicle and/or tools of the trade necessary for purposes of
employment in an amount not to exceed $ 15,000 each.
(d) This section shall apply separately with respect to each debtor in a
joint case but not to exceed $ 25,000 each in value in personal property, a
total not to exceed $ 50,000 in value in a principal residence in an individual
or a joint case, and $ 15,000 each in subsection (c) of this section vehicle
and $ 15,000 each in subsection (c) of this section tools of the trade.
§ 4915. Exemption of retirement plans
(a) In addition to the exemptions provided in §§ 4902 and 4903 of this
title, there shall be exempt from execution or attachment process assets held
or amounts payable under any retirement plan.
(b) Any amount qualifying as an "eligible rollover distribution" under
§ 402 of the Internal Revenue Code of 1986
[26 U.S.C. § 402], as amended, or as a "rollover contribution" under
§ 408 of the Internal Revenue Code of 1986
[26 U.S.C. § 408], as amended, is treated as an exempt amount under
subsection (a) of this section for 60 days after the distribution of such
amount. Such amount remains exempt from execution or attachment process if
contributed to a retirement plan within 60 days of being distributed from a
retirement plan.
(c) Any retirement plan described in subsection (a) of this section shall
not be exempt from any claims for relief granted pursuant to Chapter 5 and/or
Chapter 15 of Title 13.
(d) Any retirement plan described in subsection (a) of this section shall
not be exempt from the claims of an alternate payee under a qualified domestic
relations order. However, the interest of any and all alternate payees under a
qualified domestic relations order shall be exempt from any and all claims of
any creditor of the alternate payee. As used in this subsection, the terms
"alternate payee" and "qualified domestic relations order" have the meaning
ascribed to them in
§ 414(p) of the Internal Revenue Code of 1986
[26 U.S.C. § 414(p)], as amended.
(e) A participant or beneficiary of a retirement plan is not prohibited
from granting a valid and enforceable security interest in the participant's or
beneficiary's interest under the retirement plan to secure a loan to the
participant or beneficiary from the plan, and the right to assets held in or to
receive payments from the plan is subject to execution and attachment for the
satisfaction of the security interest or lien granted by the participant or
beneficiary to secure the loan.
(f) "Retirement plan" means any retirement or profit sharing plan that is
qualified under
§ 401,
§ 403,
§ 408,
§ 408A,
§ 409,
§ 414 or
§ 457 of the Internal Revenue Code of 1986
[26 U.S.C. § 401, § 403, § 408, § 408A, § 409, § 414 or § 457], as
amended.
(g) This section shall not exempt from execution or attachment any
judgment obtained under § 554 of Title 30.
(h) If this section is held invalid or preempted by federal law, in whole
or in part, it shall remain in effect to the maximum extent permitted by law.
Note: Exemptions may have changed since our last update. For the latest updates on these property exemptions, speak to a local bankruptcy lawyer.
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