Delaware Laws on Wage Garnishments, Statute of Limitations on Debt, and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: 85% of disposable earnings are exempt from wage garnishment. Federal law offers better deal for debtor
MAXIMUM INTEREST RATE:
Legal: Federal Reserve Discount Rate Plus 5%
Judgment: Same as above
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open account (credit card): 4 years
Sale of Goods: 4 years
Written Contract: 3 years
Domestic / Foreign Judgment: None specified
BAD CHECK LAW DAMAGES: Amount due plus litigation costs and protest fees
DELAWARE BANKRUPTCY PROPERTY EXEMPTIONS (Delaware Code Annotated):
The State of Delaware has exempted the property below from seizure by the bankruptcy court when filing bankruptcy. Total exemptions are limited to $5,000 if single and $10,000 if married (husband and wife can double exemption amounts).
Real estate: None (property is not exempt)
Personal property: Property with a fair market value of $5,000 or less [10-4914]; bible, books and family pictures up to exemption limit [10-4902(a)]; burial plot up to exemption limit [10-4902(a)]; church pew or seat in place of worship up to exemption limit [10-4902(a)]; clothing and jewelry up to exemption limit [10-4902(a)]; sewing machines up to exemption limit [10-4902(c)]; any personal property (not tools of trade) if debtor is head of family up to $500 [10-4903]; pianos and leased organs up to exemption limit [10-4902(d)]; tools, implements and fixtures, up to $75 in New Castle and Sussex Counties and up to $50 in Kent County [10-4902(b)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance: Annuity contract proceeds to $350 per month [18-2728]; health or disability benefits up to exemption limit [18-2726]; life insurance proceeds up to exemption limit [18-2725]; group life insurance policy or proceeds up to exemption limit [18-2727]; life insurance proceeds if policy prohibits from being used to pay creditors up to exemption limit [18-2729]
Pensions / Retirement Plans: Kent County employees up to exemption limit [9-4316]; state employees up to exemption limit [29-5503]; volunteer firefighters up to exemption limit [16-6653]; and police and fire officers up to exemption limit [11-8803]
Public Benefits / Entitlements: Unemployment compensation up to exemption limit [19-3374]; workers' compensation up to exemption limit [19-2355]; aid to aged, blind, disabled, and families with dependent children, general assistance up to exemption limit [31-513 and 31-2309]
Wages: 85% of earned but unpaid wages [10-4913]
Miscellaneous: Business partnership property up to exemption limit [6-1525]