Bankruptcy in Delaware
If you are finding it impossible to pay off your debts and need a way out, then you may find it beneficial to declare bankruptcy. Filing for bankruptcy in Delaware is not difficult to do and it may help to give you a clean slate that you can rebuild your life upon. Make sure that you’re aware of the fact that it can’t wipe away all debts, some examples being student loans, back taxes, and government fines and charges. There are two different kinds of bankruptcy for individuals: Chapter 7 and Chapter 13. The former is a way to clear past debt and get a fresh start, while the latter is a method by which you can set up a payment plan that you both can agree upon.
The filing procedure
When you are ready to file for bankruptcy in Delaware, then you must first take a Means Test. This test determines whether or not you are eligible to declare chapter 7 bankruptcy. In order to determine this, your income must be examined. If you earn more than the median yearly income for the state of Delaware, then you are not eligible. If you are below the median, then you may file for Chapter 7 bankruptcy. Once you are ready to file, submit your petition, schedules, and statement of financial affairs to bankruptcy court. In Delaware, the charge for filing for bankruptcy is $299. Once you’ve filed, you’ll be happy to know that your creditors may no longer contact you in request of payment. If they are still interested in collecting from you, they will have to see the judge presiding over your case.
Exemptions in Delaware
When filing for bankruptcy in Delaware, you will have the following exemptions that cannot be claimed by your creditors: family bible, school books, family library, seats or pews for places of worship, burial plots, and clothes. Also exempt include: tools of your trade, leases or hired pianos and organs, personal property to $500, 85 per cent of wages/salaries, real estate property to $5,000, retirement plans, and much more. See your attorney for a detailed list.
Chapter 13 Bankruptcy
If you are not eligible for Chapter 7, you many need to settle for Chapter 13 bankruptcy in Delaware. Even though you won’t have all your debts removed, you will still have less to pay back. Reasons for filing this method include: bringing your mortgage current so you don’t lose your home and getting a payment plan for debts that can’t be removed by Chapter 7 such as taxes and students loans.