Delaware Debt Relief

Delaware Credit Card Debt law has a short Statute of Limitations (SOL) of only three years for filing suit on unpaid open-ended credit accounts. The SOL begins from the date when the first payment was missed. Partial payments should not be made on such debt, or the SOL will reset from the date of the partial payment. Delaware allows 20 days for the Defendant to file an answer to the summons, which should be sent via certified mail.

Judgment Enforcement

Delaware’s SOL on collection of judgments lasts for ten years. Interest is charged at the state legal rate, which is 5% above the Federal Reserve discount rate. Creditors may seize and sell the property of the debtor, both real and personal. Many types of property may be exempt from seizure. For example, many types of family memorabilia are exempt up to a total of $5,000. Certain business property may also be exempt along with small limits on some pensions.

Most creditors would prefer to garnish wages, thereby avoiding the bad publicity and cost of property seizures. Delaware allows consumers to exempt 15% of their disposable income, but no less than $150 per week.

Debt Settlement

Debt Settlement is an important strategy in managing debt that can be used to avoid judgment interest by setting up an interest free payment plan. Debt Settlement also lets consumers avoid bankruptcy, the last course of action available.