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Homestead Exemption Laws in Delaware

Delaware lets a debtor exempt up to $200,000 of equity in a principal residence in bankruptcy or state insolvency proceedings, an amount raised from $125,000 in August 2024, with no acreage limit.

Last checked . General information, not legal advice.

Delaware at a glance

Exemption amount
$200,000 (bankruptcy or insolvency)
Applies in federal bankruptcy or state insolvency proceedings; the $200,000 total also applies in a joint case.
Unlimited in value
No
Acreage limit
No acreage limit
Covers equity in real property or a manufactured home that is the principal residence.

Sources

Last checked

The rules in Delaware

How much home equity does the homestead exemption protect in Delaware?

Exemption amount in Delaware: $200,000 (bankruptcy or insolvency). Applies in federal bankruptcy or state insolvency proceedings; the $200,000 total also applies in a joint case.

Is the homestead exemption unlimited in value in Delaware?

No. Unlimited in value in Delaware: no.

Is there an acreage limit on the homestead exemption in Delaware?

Acreage limit in Delaware: No acreage limit. Covers equity in real property or a manufactured home that is the principal residence.

Where do the Delaware homestead exemption laws come from?

The rules above come from Del. Code tit. 10, 4914 and 84 Del. Laws c. 329. Each source is linked on this page. We last checked them in October 2026.

Good to know

84 Del. Laws c. 329 (HB 318), approved August 2, 2024 and effective on enactment, raised the residence exemption from $125,000 to $200,000.

Delaware debtors cannot elect the federal bankruptcy exemptions.

The residence exemption is unavailable if the bankruptcy court finds the debtor owes certain debts, such as from securities law violations or from criminal acts or misconduct causing serious injury or death in the prior 5 years.

What this means in practice

The exemption applies to equity, not to the full value of the home. Equity is the market value minus the mortgages and other liens on the property. A lender that holds a mortgage on the home, and certain other claims such as taxes on the property, can usually still be enforced against it regardless of the exemption.

Check whether you need to take a step to claim the protection. Some states protect a home automatically once it is your residence, while others require you to record a homestead declaration with the county or to claim the exemption in court when a creditor tries to collect.

In bankruptcy, federal law can limit a state homestead exemption for a home bought within a set period before the filing, and residency rules decide which state's exemptions apply if you moved recently. Some states also let filers choose the federal bankruptcy exemptions instead of the state list. A bankruptcy attorney can confirm which rules apply to your situation.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.