A bill that would halt the loss of work tools and raise the dollar limit for houses that could be lost during bankruptcy proceedings passed the House on a vote of 37 yes and three absent..
House Bill 318 increases the exemption in bankruptcy and other debt proceedings for a filer’s personal residence from $125,000 to $200,000.
The exemption has been limited to $125,000 since 2012. Home prices have since seen a sharp increase. Despite the increase, the dollar limit is roughly half of the average sales price of homes in much of Delaware.
The bill also increases the exemption for tools of the trade and for a vehicle to $25,000 from $15,000.
Additionally, the act 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 bill was sponsored by State Rep. Paul Baumbach, D-Newark and has Democratic legislators as co-sponsors.
Click here for a copy of the bill
