When you file for personal bankruptcy in Delaware the courts don't automatically come in and take all of your possessions. Every state allows you to designate certain items that cannot be taken away from you when you file for Bankruptcy, no matter what happens. Delaware has among the more generous list of state exemptions. The major exemptions in Delaware include:
- Up to $125,000 worth of the equity in your home.
- Up to $25,000 of your personal property; $50,000 if you file jointly with your spouse.
- $15,000 of the equity in your car, and another $15,000 for your spouse's car if you file jointly.
- All of the funds in your tax exempt retirement accounts such as IRAs and 401(k)s.