This Act increases the exemption in bankruptcy and other debt proceedings for a debtor’s personal residence from $125,000 to $200,000. The exemption has been limited to $125,000 since 2012 while home prices have increased dramatically in the intervening years. It also increases the exemption for tools of the trade and for a vehicle to $25,000 from $15,000.
This Act also exempts worker’s compensation awards under the laws of other states from attachment in bankruptcy or other proceedings in the same manner that a worker’s compensation award made under Delaware law is exempt.
The Act takes effect on January 1, 2025.