⚖️ How to Collect a Judgment in Delaware: Complete Guide

Everything creditors, attorneys, and judgment holders need to know about enforcing and collecting civil judgments in Delaware.

⚖️ Delaware Judgment Collection Overview

Winning a civil judgment in Delaware is only the first step. The court does not automatically collect the money owed to you — that responsibility falls squarely on the judgment creditor. If the debtor does not voluntarily pay, you will need to actively pursue enforcement using the legal tools available under Delaware law.

Delaware provides judgment creditors with a set of collection remedies, including wage garnishment, property liens, bank account levies, and personal property execution. However, the state also recognizes certain debtor protections and exemptions that limit how much and what types of assets can be seized.

In Delaware, a judgment remains enforceable for 10 years from the date of entry. During that time, post-judgment interest accrues at a rate of 5% above the Federal Reserve Discount Rate per year (variable rate), which can significantly increase the total amount owed.

This guide covers every aspect of judgment collection in Delaware, from the statutes that govern enforcement to practical strategies for locating debtors and their assets.

📜 Key Delaware Statutes and Laws

Delaware judgment collection is governed by several statutes. Understanding these laws helps you identify the correct procedures and avoid costly errors.

🔹 Federal Laws That Also Apply

The Consumer Credit Protection Act (CCPA), 15 U.S.C. § 1673, caps wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Delaware may provide additional protections beyond this federal floor.

⏱️ Judgment Enforcement Period and Renewal

Delaware grants judgment creditors a 10-year enforcement period.

🔹 Renewing a Delaware Judgment

Delaware judgments are enforceable for 10 years from the date of entry. To extend the enforcement period, the creditor must file a scire facias action to revive the judgment before the 10-year period expires. A revived judgment is enforceable for an additional 10-year period.

To learn more, visit our guide on judgment renewal procedures.

💰 Post-Judgment Interest Rates

Under 6 Del. C. § 2301, the post-judgment interest rate in Delaware is 5% above the Federal Reserve Discount Rate per year (variable rate).

🔹 How Interest Grows Over Time

🔧 Collection Methods Available in Delaware

Delaware law provides several methods for enforcing a judgment. The most effective approach often combines multiple methods simultaneously.

Collection Method	Best For	Key Statute
💼 Wage Garnishment	Employed debtors with steady income	10 Del. C. § 3501
🏦 Bank Levy	Debtors with known bank accounts	10 Del. C. § 3501
🏠 Real Property Lien	Debtors who own real estate	10 Del. C. § 4711
🚗 Personal Property Execution	Debtors with vehicles, equipment	10 Del. C. § 4901
📋 Post-Judgment Discovery	Finding hidden assets and income	Delaware Court of Chancery Rule 69 / Superior Court Civil Rule 69
🔄 Judgment Domestication	Out-of-state judgments	10 Del. C. § 4781

💼 Wage Garnishment in Delaware

Wage garnishment is one of the most effective collection tools available to Delaware judgment creditors. Once a garnishment order is in place, the debtor’s employer is legally required to withhold a portion of the debtor’s wages each pay period and remit those funds to the judgment creditor.

🔹 How Much Can Be Garnished

Delaware is more protective of debtors’ wages than the federal standard. The maximum garnishment in Delaware is 15% of disposable earnings, compared to the federal limit of 25%. This provides significantly more wage protection for Delaware debtors, but also means creditors can garnish less per pay period.

“Disposable earnings” means the amount remaining after legally required deductions such as federal and state taxes, Social Security, and Medicare. Voluntary deductions like 401(k) contributions, health insurance premiums, and union dues are generally not subtracted when calculating disposable earnings.

🔹 Filing for Wage Garnishment

🏦 Bank Levies and Account Seizures

A bank levy allows a judgment creditor to seize funds directly from the debtor’s bank accounts. This is often the fastest way to collect a significant portion of a judgment.

🔹 Process for a Bank Levy in Delaware

In Delaware, bank levies are conducted through a post-judgment attachment served on the financial institution. The creditor obtains an attachment from the court and has the sheriff serve it on the bank. The bank must freeze the debtor’s accounts and hold the funds pending resolution of any exemption claims.

🔹 Exemptions for Bank Accounts

Certain funds may be exempt under both federal and Delaware law:

✅ Social Security benefits (42 U.S.C. § 407)

✅ Veterans’ benefits

✅ SSI and public assistance

✅ Workers’ compensation benefits

✅ Certain retirement and pension funds

🏠 Property Liens and Real Estate

Recording a judgment lien against the debtor’s real property is a powerful long-term strategy.

🔹 How Judgment Liens Work in Delaware

In Delaware, a judgment lien is created by recording the judgment with the Prothonotary’s Office in the county where the debtor owns real property. Delaware has only 3 counties (New Castle, Kent, and Sussex), making it straightforward to record liens statewide. The lien attaches to all real property owned by the debtor in the county where recorded.

🔹 Forced Sale of Real Property

If the debtor owns property with equity above the homestead exemption, the creditor can request execution directing the sale at public auction. A real property asset search can provide detailed property information.

🔹 Redemption Rights

Delaware provides a 60-day right of redemption for real property sold at sheriff’s sale. During this period, the debtor can reclaim the property by paying the full purchase price plus costs and interest. After 60 days, the sale becomes final.

🚗 Personal Property Execution

Judgment creditors can execute on vehicles, equipment, jewelry, and other tangible assets.

✅ Automobiles, trucks, and recreational vehicles (subject to exemptions)

✅ Equipment, tools, and machinery

✅ Household goods and furnishings (subject to exemptions)

✅ Business inventory and receivables

✅ Investments, stocks, and bonds

A vehicle asset search can identify vehicles registered to the debtor.

🛡️ Delaware Debtor Exemptions

Exemption Category	Protection Amount	Statute
🏠 Homestead	$125,000	10 Del. C. § 4711
👤 Personal Property	$25,000 in aggregate	10 Del. C. § 4903
💼 Wages	15% of disposable earnings	Federal + state law
🪖 Military Benefits	100% exempt	Federal Law
🏥 Workers’ Comp	100% exempt	19 Del. C. § 2355
👴 Public Pensions	100% exempt	11 Del. C. § 8803

📋 Post-Judgment Discovery and Debtor Exams

Post-judgment discovery under Delaware Court of Chancery Rule 69 / Superior Court Civil Rule 69 allows you to compel the debtor to disclose detailed financial information under oath.

🔹 What You Can Discover

✅ Employment details, income, and employer address

✅ All bank accounts, institutions, and balances

✅ Real property owned in Delaware and any other state

✅ Vehicle titles and registrations

✅ Business ownership interests

✅ Investment and retirement accounts

✅ Recent asset transfers (potential signs of hidden assets)

Learn more in our guide on post-judgment discovery.

🔍 Locating the Debtor and Their Assets

The biggest obstacle in Delaware judgment collection is often finding the debtor and identifying what they own.

🔹 Why Skip Tracing Matters

Professional skip tracing services locate debtors who have moved or are avoiding collection. Our Delaware skip tracing services leverage records from all 3 Delaware counties.

🔹 Asset Discovery Services

✅ Real property holdings

✅ Vehicle registrations

✅ Business interests

✅ Hidden asset investigations

🌟 What Makes Delaware Unique for Judgment Collection

Delaware has several distinctive characteristics for judgment collection:

✅ Only 3 counties — Delaware has just 3 counties (New Castle, Kent, and Sussex), making statewide lien coverage simple and inexpensive. You can record judgment liens in all 3 counties for minimal cost.

✅ Low 15% wage garnishment limit — Delaware’s garnishment rate is one of the lowest in the nation for regular civil judgments, protecting 85% of the debtor’s disposable earnings. This makes other collection methods (bank levies, property execution) relatively more important.

✅ Variable interest rate — Delaware’s post-judgment interest rate fluctuates with the Federal Reserve Discount Rate, meaning it can change over the life of the judgment. During periods of high interest rates, this can significantly benefit creditors.

✅ Generous personal property exemption — The $25,000 aggregate personal property exemption is among the highest in the nation, protecting a significant amount of the debtor’s personal belongings from execution.

✅ Corporate haven implications — Delaware is home to more than 1.8 million registered business entities. Debtors who are business owners in Delaware may have complex corporate structures that require careful investigation to identify seizable assets versus protected corporate assets.

✅ Prothonotary system — Delaware uses “Prothonotary” instead of “County Clerk” for many recording functions. Out-of-state creditors should be aware of this terminology difference when filing documents.

✅ High small claims limit — Delaware’s Justice of the Peace Court handles claims up to $25,000, one of the highest small claims limits in the nation.

🔄 Out-of-State Judgment Domestication

If your judgment was obtained in another state and the debtor is now in Delaware, you must domesticate the judgment before enforcing it.

Delaware has adopted the Uniform Enforcement of Foreign Judgments Act. File a certified copy of the foreign judgment with the Prothonotary in the county where enforcement is sought, along with the required affidavit. Once filed, the judgment has the same effect as a Delaware judgment.

See our guide on how to domesticate a judgment.

🏛️ Small Claims Judgment Enforcement

Judgments from Delaware’s Justice of the Peace Court (under $25,000) are enforced using the same methods as any other civil judgment. See our guide on enforcing small claims judgments.

💡 Practical Tips for Delaware Judgment Creditors

🔹 Act Quickly After Judgment

File garnishments and liens within the first 30 days to maximize recovery before the debtor can move assets.

🔹 Use Multiple Methods Simultaneously

Combine wage garnishment, property liens, and bank levies for maximum pressure.

🔹 Investigate Before Executing

Invest in a professional asset search to target the most productive assets first.

🔹 Watch for Fraudulent Transfers

Delaware has adopted the Uniform Voidable Transactions Act (6 Del. C. § 1301 et seq.), providing creditors with tools to challenge fraudulent transfers and reach assets the debtor attempted to shelter. Identify suspicious transfers and petition the court to reverse them.

🔹 Consider Bankruptcy Risk

Aggressive collection can push debtors into bankruptcy. Sometimes a negotiated settlement produces a better outcome.

🏢 Corporate Considerations in Delaware

Delaware’s status as America’s corporate capital creates unique challenges and opportunities for judgment collection. More than 1.8 million business entities are registered in Delaware, and many debtors have complex corporate structures that can affect collection strategies.

🔹 Piercing the Corporate Veil

If the debtor is a business entity or operates through one, it may be possible to reach assets held by the entity through a theory of alter ego liability. Delaware courts apply a multi-factor test to determine whether the corporate entity is merely an alter ego of the individual debtor, examining factors such as commingling of funds, failure to observe corporate formalities, undercapitalization, and use of the entity for personal purposes.

🔹 Searching for Business Assets

A business asset search in Delaware is essential when the debtor operates through a corporate entity. This search can reveal registered agents, officers and directors, filing history, and the debtor’s role in any Delaware-registered entities. Given Delaware’s popularity for business formation, the debtor may have entities registered in Delaware even if they live elsewhere.

💲 Collection Costs and Fees in Delaware

Delaware’s small size (3 counties) keeps some collection costs lower than in larger states.

✅ Judgment lien recording fee: Approximately $35 to $75 per county through the Prothonotary

✅ Writ of fieri facias: $25 to $50 filing fee

✅ Attachment (garnishment) filing: $30 to $60

✅ Sheriff’s fees: Vary by county for service, levy, and sale

✅ Statewide lien coverage: Since there are only 3 counties, complete coverage costs under $250 in recording fees

📅 Typical Delaware Judgment Collection Timeline

✅ Judgment Satisfaction in Delaware

When the judgment is fully satisfied, the creditor must file a satisfaction of judgment with the Prothonotary in each county where the judgment was recorded. Given that Delaware has only 3 counties, this is a straightforward process, but it must still be completed promptly to avoid liability.

🔹 Settlement Considerations

Delaware’s variable interest rate (5% above the Federal Reserve Discount Rate) means the total judgment amount can grow at different speeds depending on economic conditions. During periods of high interest rates, debtors are more motivated to settle quickly. Creditors should monitor the current rate and factor it into settlement negotiations. A settlement calculator that accounts for the variable rate can help both parties understand the true current obligation.

🔹 Delaware’s Three-County Advantage

Delaware’s small size and three-county structure offer a significant practical advantage for judgment creditors. Unlike states with dozens or hundreds of counties, achieving complete statewide coverage in Delaware requires only three filings — one with each county’s Prothonotary (New Castle, Kent, and Sussex). This means:

✅ Statewide lien coverage is affordable — Total recording fees for all 3 counties typically total under $250

✅ Property searches are comprehensive — Searching all 3 counties ensures nothing is missed

✅ Service of process is efficient — Delaware’s compact geography means faster, less expensive service

✅ Court proceedings are centralized — Delaware’s court system (Court of Chancery, Superior Court, Court of Common Pleas) is small and well-organized

For creditors accustomed to dealing with states that have 50, 100, or even 159 counties, Delaware’s three-county structure is refreshingly simple.

🔹 Delaware Court of Chancery

Delaware’s Court of Chancery is world-renowned for handling corporate and business disputes. If your judgment involves a business entity or corporate dispute, the Court of Chancery may have jurisdiction. This court has extensive experience with complex asset tracing, corporate veil piercing, and alter ego liability claims. Its rulings carry significant weight nationwide in corporate law matters, making Delaware an important jurisdiction for business-related judgments.

🔹 Cross-Border Collections

Delaware borders Pennsylvania, Maryland, and New Jersey, and many Delaware residents work across state lines. The debtor may earn wages in one state while owning property in Delaware (or vice versa). Our nationwide skip tracing services can track assets and employment across these borders, and our team can help coordinate enforcement actions in multiple jurisdictions simultaneously.

⚖️ Delaware Court of Chancery and Complex Collections

Delaware’s Court of Chancery is one of the most important business courts in the world. For judgment creditors dealing with business entities, understanding the Chancery Court’s role and capabilities can be crucial to successful collection.

🔹 Corporate Veil Piercing in Delaware

Delaware courts apply a rigorous but well-developed test for piercing the corporate veil. Key factors include:

✅ Whether the entity was used as a mere instrumentality or alter ego of the individual

✅ Commingling of personal and corporate funds

✅ Failure to observe corporate formalities (meetings, records, resolutions)

✅ Undercapitalization of the entity

✅ Use of the entity to perpetrate fraud or injustice

Because Delaware is home to so many business entities, its case law on veil piercing is extensive and well-developed. This can work in the creditor’s favor when the debtor has clearly abused the corporate form to evade obligations.

🔹 Charging Orders Against LLC Interests

If the debtor owns membership interests in a Delaware LLC, the creditor may be able to obtain a charging order against those interests. A charging order directs that any distributions from the LLC that would normally go to the debtor-member be redirected to the judgment creditor instead. While a charging order does not give the creditor voting rights or control over the LLC, it captures the economic benefit of ownership.

🔹 Receivership

In appropriate cases, Delaware courts can appoint a receiver to take control of the debtor’s assets and business operations for the purpose of satisfying the judgment. Receivership is typically reserved for situations where other collection methods have failed and the debtor has significant assets that are being mismanaged or concealed.

📋 Debtor Protections in Delaware

Delaware balances creditor rights with meaningful debtor protections. Understanding these protections helps creditors avoid wasting resources on exempt assets and focus on the most productive collection targets.

🔹 The $25,000 Personal Property Exemption

Delaware’s $25,000 aggregate personal property exemption is one of the most generous in the nation. This means the debtor can protect up to $25,000 worth of personal belongings from execution. Creditors should focus enforcement efforts on assets that clearly exceed this exemption threshold or on asset categories that are not protected (such as business assets, non-exempt investments, and luxury items beyond the exemption cap).

🔹 15% Wage Garnishment Impact

Delaware’s 15% wage garnishment cap means collection through garnishment is slower than in states with the standard 25% limit. For a debtor earning $4,000/month in disposable income, the monthly garnishment is only $600 in Delaware versus $1,000 in a 25% state. This 40% reduction in garnishment speed makes it important to supplement wage garnishment with other collection methods like bank levies and property execution for faster recovery.

🔍 Challenging Fraudulent Transfers in Delaware

Delaware’s Uniform Voidable Transactions Act (6 Del. C. § 1301 et seq.) is an important tool for creditors when debtors attempt to shield assets from collection. Given Delaware’s status as a corporate haven, fraudulent transfers in Delaware can involve complex entity structures that require sophisticated investigation.

🔹 Common Delaware Fraudulent Transfer Patterns

✅ Transferring personal assets into newly formed LLCs or corporations

✅ Moving real property into irrevocable trusts

✅ Converting non-exempt assets (cash, investments) into exempt assets (homestead equity)

✅ “Selling” assets to related parties at below-market prices

✅ Creating complex multi-entity structures to obscure ownership

A thorough hidden asset investigation can uncover these patterns by tracing asset movements, identifying related entities, and discovering transfers that may be subject to challenge.

🔹 Asset Protection Trusts in Delaware

Delaware is one of the few states that allow domestic asset protection trusts (DAPTs). These are irrevocable trusts designed to protect the settlor’s assets from creditors. While DAPTs can be effective for pre-existing planning, creditors can challenge transfers into DAPTs that were made after the debt arose or within 4 years of the creditor’s claim. Understanding the limitations and vulnerabilities of Delaware DAPTs is essential for creditors pursuing significant judgments.

❓ Frequently Asked Questions

🔹 How long do I have to collect a judgment in Delaware?

You have 10 years from the date the judgment is entered. Consult the renewal provisions above for Delaware-specific procedures.

🔹 What is the post-judgment interest rate in Delaware?

The rate is 5% above the Federal Reserve Discount Rate per year (variable rate), under 6 Del. C. § 2301.

🔹 Can I garnish wages in Delaware?

Yes. Delaware is more protective of debtors’ wages than the federal standard. The maximum garnishment in Delaware is 15% of disposable earnings, compared to the federal limit of 25%. This provides significantly more wage protection for Delaware debtors, but also means creditors can garnish less per pay period.

🔹 What is the homestead exemption in Delaware?

Delaware provides a homestead exemption of $125,000 for the debtor’s primary residence. This exemption protects equity in the debtor’s home from forced sale to satisfy a judgment.

🔹 Can I collect on a judgment from another state?

Yes. Domesticate the judgment in Delaware first.

🔹 What if the debtor has moved?

Delaware skip tracing can locate debtors who have moved.

🔹 What happens if the debtor files for bankruptcy?

A bankruptcy filing triggers an automatic stay halting all collection. Learn more about investigating debtors in bankruptcy.

📞 Get Professional Help

Whether you need to locate a judgment debtor, discover hidden assets, or identify a debtor’s employer for wage garnishment, professional services dramatically improve recovery rates.

Services supporting Delaware judgment collection:

✅ Skip Tracing Services — Locate debtors who have moved or are avoiding collection

✅ Asset Search Services — Identify real property, vehicles, businesses, and financial assets

✅ Employer Locate — Find the debtor’s current employer for wage garnishment

✅ Judgment Debtor Location — Specialized searches for disappeared debtors

✅ Judgment Recovery Services — Comprehensive judgment collection support

This guide was last updated in . Consult with a licensed Delaware attorney for advice specific to your situation.