With bankruptcy filings in Delaware and across the nation soaring in the middle of this decade, legislators (with a helpful nudge from credit card lobbyists) decided to take steps to reform the bankruptcy code. The overall goal was to discourage people from filing bankruptcy to solve their debt problems, and they did this by re-writing the laws so that more people would be forced to file the less preferred Chapter 13 plan. In this chapter of bankruptcy the debtor pays back their debts from their monthly disposable income over a period of three to five years. Although many debtors are still eligible for relief through Chapter 7, where your debt is erased upon discharge, consumers with higher incomes may no longer qualify. If you are a person whose income is above the median income in Delaware, you will be forced to pass the means test in order to qualify for Chapter 7. Below are median income figures for Delaware from 2006:

2-person families: 54,105
3-person families: 64,840
4-person families: 78,321
5-person families: 73,730
6-person families: 91,901
7-or-more-person families: 71,220

With debt consolidation solutions available that can reduce your monthly payments dramatically and cut your debt in half it is possible that Chapter 13 is not your best option for credit card debt. To learn more about what other debt assistance is available for your situation, just fill out a form on our website and we will match you with a debt company for help. Or feel free to read up on some of the other issues that pertain to credit topics in Delaware:

Delaware Consumer Credit Counseling Services
Delaware Bankruptcy Laws
Delaware Debt Collection

Bankruptcy Numbers In Delaware

2004: 3,392
2005: 4,150
2006: 1,284

Like almost every other state, Delaware saw a dramatic decrease in the number of personal bankruptcies filed between 2005 and 2006. When it was all said and done, the new bankruptcy laws managed to reduce the total consumer bankruptcy cases by 69 percent in Delaware alone. As a result, more and more people are finding ways to avoid bankruptcy, whether it involves cutting back expenses or using a third party service like a debt consolidation company.