Delaware’s expanded exemptions, effective January 1, 2025, meaningfully lowered the liquidation test floor for many Chapter 13 filers — the vehicle and personal property allowances both jumped to $25,000, giving filers more room to protect what they own without increasing what their plan has to pay unsecured creditors.
How Chapter 13 Works in Delaware
You file a petition and propose a repayment plan lasting three to five years. A standing Chapter 13 trustee collects your monthly payment and distributes it — secured debts first, then priority claims, then whatever’s left goes to unsecured creditors. You keep all your property throughout, and remaining qualifying unsecured debt is discharged when the plan completes.
The exemptions you claim set your plan’s liquidation test floor — the minimum unsecured creditors must receive.
How Delaware’s Expanded Exemptions Affect Your Plan
Delaware’s homestead exemption protects $125,000 in home equity. Not doubled for married couples filing jointly. Delaware is an opt-out state, so filers must use Delaware's own exemption list. Delaware substantially increased several of its exemptions effective January 1, 2025. The vehicle exemption is now $25,000 in equity in one vehicle (increased from $15,000 effective January 1, 2025). In joint cases, each spouse gets their own $25,000. and the personal property allowance is $25,000 in personal property or equity in real property other than your principal residence - a new, expanded allowance effective January 1, 2025, replacing a much smaller prior exemption. In joint cases, each spouse gets their own $25,000. Both increases mean less property is exposed to the liquidation test than under Delaware’s pre-2025 exemption amounts.
Why Delaware Filers End Up in Chapter 13
Mortgage arrears are the most common driver — catching up on missed payments without losing the house. Income above the means test threshold is the second major factor.
Do You Qualify for Chapter 7 Instead? The Means Test
Delaware’s current median income figures:
- 1 person: $69,515
- 2 people: $94,877
- 3 people: $111,273
- 4 people: $132,244
- Each additional person: add $11,100
Filers above the median for their household size generally must commit to a five-year plan; those below can propose three years.
Mortgage Cure in Delaware
Filing Chapter 13 triggers the automatic stay, halting foreclosure immediately. The plan spreads mortgage arrears across its three-to-five-year duration while you resume regular payments going forward.
Vehicle Treatment and Cramdown
If your car loan was originated far enough before filing and the vehicle is worth less than the remaining balance, Chapter 13 can cram the loan down to the vehicle’s current market value at a court-approved interest rate — though with Delaware’s newly expanded $25,000 vehicle exemption, fewer filers will need this tool than before 2025.
Which Federal District Do You File In?
District of Delaware - a single statewide district, with all filings and hearings handled through the Wilmington courthouse or electronically.How Much Does a Chapter 13 Attorney Cost in Delaware?
Chapter 13 attorney fees in Delaware typically run $3,500 to $4,500, on top of the 313 federal filing fee. Unlike Chapter 7, these fees are usually built into the plan itself.
Common Mistakes Delaware Filers Make
Relying on outdated exemption figures. Delaware’s vehicle and personal property exemptions both increased substantially on January 1, 2025 — plans drafted using older amounts may understate what’s actually protected.
Missing required tax filings during the plan, which can trigger a motion to dismiss.
Overlooking a non-filing spouse’s income in the means test.
Not claiming separate exemptions for each spouse in a joint case, where vehicle and personal property allowances can each be doubled.
A Realistic Example
Consider a filer we’ll call Anthony, living in Dover. He works in state government and fell behind on his mortgage after a period of reduced hours. He owns his home with about $100,000 in equity and drives a car worth $22,000 with a small loan remaining.
Delaware’s $125,000 homestead exemption fully covers his equity. His $22,000 vehicle now falls comfortably under the expanded $25,000 vehicle exemption — a gap that wouldn’t have been fully covered under the old $15,000 limit. His attorney confirms both assets are fully protected, keeping his liquidation test floor at zero.
His income lands above Delaware’s median for a household of two, so he commits to a five-year plan. The mortgage arrears are spread across the plan while he resumes regular payments. Five years later, the mortgage is current and the remaining unsecured debt is discharged.
Frequently Asked Questions About Chapter 13 Bankruptcy in Delaware
Can Chapter 13 stop foreclosure in Delaware?
Yes. Filing triggers the automatic stay, which halts foreclosure immediately. Your plan then spreads the mortgage arrears across three to five years while you resume regular payments.
Did Delaware’s exemptions change recently?
Yes. Effective January 1, 2025, Delaware increased its vehicle and tools-of-trade exemptions from $15,000 to $25,000 each, and added a new $25,000 general personal property exemption.
How long does a Chapter 13 plan last in Delaware?
Three to five years. Filers with household income above Delaware’s median for their household size generally must propose a five-year plan; those below can propose three years.
Can I keep my car in a Delaware Chapter 13?
Yes — Chapter 13 doesn’t require giving up property. Delaware’s vehicle exemption now covers up to $25,000 in equity, and the plan can also cram down an underwater car loan to the vehicle’s current value.
What is the Delaware bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $69,515 for one person, $94,877 for two, $111,273 for three, and $132,244 for four, with $11,100 added per additional person.
Which bankruptcy court handles my case in Delaware?
Delaware has a single statewide bankruptcy court, the District of Delaware, based in Wilmington.
Where to Verify the Details
Delaware’s exemption statute is published at Del. Code tit. 10, § 4914. For current means test figures, check the U.S. Trustee Program website.
Alternatives to Chapter 13 in Delaware
If you pass the means test and don’t need to cure a mortgage, our Chapter 7 guide for Delaware explains how straight liquidation might discharge your debt faster.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect Delaware bankruptcy exemption amounts and federal filing data as of July 2026.