Delaware Asset Protection Summary 

Homestead Exemption

In any federal or state bankruptcy proceeding, a homestead exemption of $50,000 is offered.  In the case of joint debtor’s the aggregate value is $50,000; each individual is entitled to $25,000.  To view this statute, please click here.

Life Insurance and Annuities

Proceeds and avails (cash surrender value) of life insurance polices secured by the insured for the benefit or his/her beneficiaries and assigns are exempt.  To see this statute, please click here.

Policies or proceeds of group life and/or health insurance are exempt from liability from the debts of any person having a right under the policy.  To see this statute, please click here.

Any benefits, rights, privileges, and options under an annuity contract are exempt.  This exemption is limited to $350 per month; any payments exceeding $350 per month will be subject to garnishee execution.  To see this statute, please click here.

IRAs

§4915 of Title 10: Courts and Procedure states, … assets held or amounts payable under any retirement plan are exempt from execution or attachment process.  To see this statute, please click here.

Health Insurance

Proceeds and avails (cash surrender value) of all health insurance contracts providing disability benefits are exempt from liability for any debt of the insured or beneficiary existing at the time the proceeds are made available.  To see this statute, please click here.

Delaware LLC and Partnership Statutes

Charging Order

Under Delaware’s Limited Liability Company Act, a judgment creditor of a member or a member’s assignee may charge the limited liability company interest of the judgment debtor to satisfy a judgment.  This charging order will constitute a lien on the judgment debtor-member’s limited liability company interest.  This is the judgment creditor’s exclusive remedy.  To see this section of the Limited Liability Company Act, click here.

Under the Revised Uniform Partnership Act and the Revised Uniform Limited Partnership Act (2001), as a judgment creditor’s exclusive remedy, a charging order may be placed against a debtor-partner’s transferable partnership interest.  This charging order constitutes a lien against the debtor-partner’s transferable partnership interest.  To see this language in the Revised Uniform Partnership Act click here.  To see this language in the Revised Uniform Limited Partnership Act click here.

Business Acts

1. Delaware General Corporation Law
   1. To view this Act, click here.
2. Delaware Limited Liability Company Act
   1. To view this Act, click here.
3. Delaware Revised Uniform Limited Partnership Act
   1. To view this Act, click here.
4. Delaware Revised Uniform Partnership Act
   1. To view this Act, click here.

The Asset Protection Society makes every attempt to keep the material on its web-pages up to date and accurate. Having said that, The APS does not warrant the material on this site and you should ALWAYS seek out the advice of a local advisor in your state who can give you individual advice for your particular situation and confirm the status of your state laws.