Who can file for Chapter 7 bankruptcy in Delaware?

Bankruptcy cases can only be filed in a state if venue is proper there. Generally, venue is proper in the state where a debtor lived for most of the six months immediately prior to filing. Consequently, a person can only file for Chapter 7 bankruptcy in Delaware if he or she lived in Delaware longer than anywhere else in the last six months.

However, a different test is used to determine which state’s exemptions will apply to a case. Specifically, the law of the state where a debtor lived for the two years prior to filing will determine what exemptions are available. If the debtor did not live in one state for that entire two-year period, then the court will apply the law of the state where the debtor lived for most of the six months preceding those two years.

Example: Alana files for Chapter 7 bankruptcy in Delaware on July 1, 2017. She has lived in Delaware since January 1, 2017, before which she had lived in Arkansas her whole life. Although venue is proper in Delaware, the court will look to Arkansas law to determine Alana’s exemptions.

Cost to file chapter 7 in Delaware

The chapter 7 filing fees in Delaware are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Where are the bankruptcy courts in Delaware?

Chapter 7 bankruptcy cases in Delaware are filed in the U.S. Bankruptcy Court for the District of Delaware. It has one location:

Street Address: 824 Market St. N., 3rd Floor, Wilmington, DE 19801

Telephone: (302) 252-2900

Website: http://www.deb.uscourts.gov/

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