Delaware Bankruptcy

Bankruptcy is a legal process that allows individuals or businesses to seek relief from debts when they cannot meet all their financial obligations. It involves a federal court process, although Delaware has some exemption laws and procedures that determine what property you can protect and how you file. Delaware is an “opt-out” state, so debtors must adopt Delaware exemptions rather than the federal list.

How to File Bankruptcy in Delaware

Below is a practical roadmap to file your case from the beginning to the end. It is necessary to complete a court-approved course within 180 days before filing your case. You must submit all required documents, which may include tax returns, six months of income proofs, bank statements, asset and debt lists, vehicle titles, and real estate records. The correct chapters and Delaware’s exemption must be selected by you.

Then file your petition with the court (CM/ECF for attorneys or pro se filing per the clerk's guidance).Pay the filing fee to the court or request relief or a waiver. Within 15 days of filing, you must submit copies of all payment advices/pay statements received during the 60 days before filing, or a certification that none exist, to the United States Trustee.

During your 341 meeting with the creditors, you must appear, present a valid ID, and respond to all trustee information requests. After filing your case, you must complete debtor education, cure any deficiencies, and monitor court and trustee communications until discharge or plan confirmation.

Delaware Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

You must endeavor to select the correct chapter based on your income, assets, and goals.

Chapter 7 (liquidation)

Low-income individuals with unsecured debts may pick this option. It allows the sale of your non-exempt assets to settle your debts. You must complete a course in personal financial management and file it with the court within 60 days of the first date set for the Meeting of Creditors, or your case may be closed without a discharge.

Chapter 13 (Repayment Plan)

An individual with a regular income may decide to repay their debts over a 3–5-year period. You must complete a course in personal financial management and file your certification (as evidence) with the court. This action must be taken before the last payment is made, as required by the plan, or by filing a motion for entry of discharge. Failure to do so will cause your case to be closed without a discharge.

Chapter 11 (Reorganization)

A good option for businesses and some high-debt individuals. It allows you to continue operations while proposing and confirming a plan in the District of Delaware.

Step In Filing for Bankruptcy in Delaware

You may check the following concise list to manage deadlines for bankruptcy cases and required filings.

• Complete a credit-counseling course
• Gather all required financial documents
• Choose the correct chapter and apply Delaware exemptions.
• File your petition and schedules with the court
• Pay the filing fee or request installments/waiver
• Attend the 341 meeting of creditors
• Complete debtor-education course
• Respond to trustee or court notices until discharge or plan completion

Delaware Bankruptcy Court & Record Access

You must know where to file your bankruptcy case and how to access the records.

Court Locations

The District of Delaware: The court is situated in Wilmington. You may visit the courthouse Monday through Friday, 8:00 am to 4:00 pm (Excluding Federal Holidays) at:

Record Access

The United States Bankruptcy Court for the District of Delaware maintains bankruptcy records in Delaware. Online access is possible through the PACER Case Locator. However, you must register an account and pay a $0.10 fee to search and view the court case files.

The Voice Case Information System (VCIS) allows you to access case information through your telephone by calling 866-222-8029. This service is free, and you can select to hear information by using the numbers on your telephone keypad. You can search the system by case number, party name, or social security number.

For archived records stored at the National Archives and Records Administration (NARA), a form is available for you to request inspection of the documents. You may also visit the clerk's office between 8:00 am and 5:00 pm, Monday through Friday, for further inquiries or certified records. To obtain copies of records from the clerk's office, you may pay $0.50 per page as copy fees. You may also view and print copies from public access terminals in the Clerk's office at $0.10 per page.