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Delaware Debt Collection Laws: Time Limits, Garnishment and Your Rights

Delaware debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.

Quick answers for Delaware

Time limit to sue on a written contract
3 years. Actions based on a promise, and actions to recover a debt not evidenced by a record or by an instrument under seal, must be brought within 3 years after the claim accrues. 10 Del. C. § 8106(a), (c)
Wage garnishment limit
85% of wages are exempt from attachment, so no more than 15% can be taken, which is stricter than the federal 25% limit. Only one wage attachment may be in effect at a time; 10 Del. C. § 4913
Money protected in a bank account
No general bank account exemption outside bankruptcy. A head of a family may select up to $500 of personal property, which can include money, in addition to specific items such as clothing and family books. 10 Del. C. §§ 4902, 4903
Answering a debt lawsuit
Most debt suits up to $25,000 are filed in the Justice of the Peace Court. In a debt action there, the defendant must file a written answer within 15 days after receiving the summons, or risk a default judgment. 10 Del. C. §§ 9522, 9523; Delaware Courts, Starting a Civil Action in JP Court

Last verified: 2026-10-26

Time limits

Time limit to sue on a written contract3 years. Actions based on a promise, and actions to recover a debt not evidenced by a record or by an instrument under seal, must be brought within 3 years after the claim accrues. Delaware does not set a separate, longer period for ordinary written consumer contracts. A written contract involving at least $100,000 may set its own period of up to 20 years.
Re-verified 2026-10-27.
Source: 10 Del. C. § 8106(a), (c)
Time limit for credit cards and open accounts3 years, the same as other promises and debts not under seal. For a mutual and running account between the parties, the claim may accrue later.
Re-verified 2026-10-27.
Source: 10 Del. C. §§ 8106(a), 8108
How long a judgment lastsAn execution may be issued on a civil judgment within 5 years after it was entered (or after an installment came due). After that, the creditor generally must revive the judgment by a writ of scire facias before collecting.
Re-verified 2026-10-27.
Source: 10 Del. C. §§ 5071, 5072, 5073

If you are sued

Answering a debt lawsuitMost debt suits up to $25,000 are filed in the Justice of the Peace Court. In a debt action there, the defendant must file a written answer within 15 days after receiving the summons, or risk a default judgment. The defendant may also demand a bill of particulars (details of the claim).
Self-help: https://courts.delaware.gov/help/proceedings/jp_startcivil.aspx Re-verified 2026-10-27.
Source: 10 Del. C. §§ 9522, 9523; Delaware Courts, Starting a Civil Action in JP Court

Garnishment and what creditors can't take

Wage garnishment limit85% of wages are exempt from attachment, so no more than 15% can be taken, which is stricter than the federal 25% limit. Only one wage attachment may be in effect at a time; the first creditor has priority until its judgment is paid. The 85% protection does not apply to collection of state fines, costs or taxes.
Re-verified 2026-10-27.
Source: 10 Del. C. § 4913
Money protected in a bank accountNo general bank account exemption outside bankruptcy. A head of a family may select up to $500 of personal property, which can include money, in addition to specific items such as clothing and family books. Exempt federal benefits keep their protection under federal law.
Re-verified 2026-10-27.
Source: 10 Del. C. §§ 4902, 4903
Homestead exemptionOutside bankruptcy, Delaware's execution statutes provide no homestead exemption. In a bankruptcy or state insolvency case, a debtor may exempt up to $200,000 of equity in a principal residence (real property or a manufactured home), with some exceptions for certain debts.
Re-verified 2026-10-27.
Source: 10 Del. C. § 4914(c)(1), (e)
Vehicle exemptionIn a bankruptcy or state insolvency case, a vehicle necessary for employment is exempt up to $25,000. Outside bankruptcy there is no separate vehicle exemption; a head of a family may include a vehicle in the $500 personal property exemption.
Re-verified 2026-10-27.
Source: 10 Del. C. §§ 4914(c)(2), 4903
Bankruptcy exemptionsDelaware has opted out of the federal exemptions. In bankruptcy, Delaware debtors may use only Delaware exemptions, including the bankruptcy-only exemptions: up to $25,000 in other property, $200,000 in a principal residence, and $25,000 each for a work vehicle and tools of the trade.
Re-verified 2026-10-27.
Source: 10 Del. C. § 4914(a)-(d)

Debt collectors and interest

Interest rate limitsWithout a contract rate, the legal rate is 5% over the Federal Reserve discount rate. A judgment on a loan agreement bears post-judgment interest at 5% over the Federal Reserve discount rate or the contract rate, whichever is less. Interest is not limited on loans over $100,000 not secured by the borrower's principal residence.
Re-verified 2026-10-27.
Source: 6 Del. C. § 2301(a), (c)

Where to get help in Delaware

Debt & Collections FAQ

What is the statute of limitations on debt in Delaware?
3 years. Actions based on a promise, and actions to recover a debt not evidenced by a record or by an instrument under seal, must be brought within 3 years after the claim accrues. Delaware does not set a separate, longer period for ordinary written consumer contracts. A written contract involving at least $100,000 may set its own period of up to 20 years.
How long can a creditor sue on a credit card debt in Delaware?
3 years, the same as other promises and debts not under seal. For a mutual and running account between the parties, the claim may accrue later.
How long does a court judgment last in Delaware?
An execution may be issued on a civil judgment within 5 years after it was entered (or after an installment came due). After that, the creditor generally must revive the judgment by a writ of scire facias before collecting.
How much of my wages can be garnished in Delaware?
85% of wages are exempt from attachment, so no more than 15% can be taken, which is stricter than the federal 25% limit. Only one wage attachment may be in effect at a time; the first creditor has priority until its judgment is paid. The 85% protection does not apply to collection of state fines, costs or taxes.
How much money in a bank account is protected from creditors in Delaware?
No general bank account exemption outside bankruptcy. A head of a family may select up to $500 of personal property, which can include money, in addition to specific items such as clothing and family books. Exempt federal benefits keep their protection under federal law.
What is the homestead exemption in Delaware?
Outside bankruptcy, Delaware's execution statutes provide no homestead exemption. In a bankruptcy or state insolvency case, a debtor may exempt up to $200,000 of equity in a principal residence (real property or a manufactured home), with some exceptions for certain debts.
Can a creditor take my car in Delaware?
In a bankruptcy or state insolvency case, a vehicle necessary for employment is exempt up to $25,000. Outside bankruptcy there is no separate vehicle exemption; a head of a family may include a vehicle in the $500 personal property exemption.
What is the maximum legal interest rate in Delaware?
Without a contract rate, the legal rate is 5% over the Federal Reserve discount rate. A judgment on a loan agreement bears post-judgment interest at 5% over the Federal Reserve discount rate or the contract rate, whichever is less. Interest is not limited on loans over $100,000 not secured by the borrower's principal residence.
How do I respond to a debt collection lawsuit in Delaware?
Most debt suits up to $25,000 are filed in the Justice of the Peace Court. In a debt action there, the defendant must file a written answer within 15 days after receiving the summons, or risk a default judgment. The defendant may also demand a bill of particulars (details of the claim).
Which bankruptcy exemptions can I use in Delaware?
Delaware has opted out of the federal exemptions. In bankruptcy, Delaware debtors may use only Delaware exemptions, including the bankruptcy-only exemptions: up to $25,000 in other property, $200,000 in a principal residence, and $25,000 each for a work vehicle and tools of the trade.

Debt & Collections in other states

More Delaware law

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.