Delaware Debt Collection Laws: What Collectors Can't Do to You

A debt collector from Wilmington calls you at 7 a.m. Demanding payment. Another threatens to tell your employer about your medical debt. A third refuses to prove the debt is actually yours.

All three just broke federal law.

Delaware residents have specific protections against abusive debt collection tactics. Understanding these rules puts you in control when collectors come calling. Here's what they can and cannot do under state and federal law.

Federal Law Protects Delaware Residents From Collector Abuse

The Fair Debt Collection Practices Act (FDCPA) applies to every debt collector operating in Delaware. This federal law draws bright lines around acceptable collection behavior.

Collectors cannot call you before 8 a.m. Or after 9 p.m. Unless you give permission. They get one call per day, maximum. If they blow up your phone with five calls in an afternoon, document every one. You now have grounds for an FDCPA lawsuit.

They cannot contact your boss, your neighbor, or your mother about your debt. Exceptions exist only for confirming your location or employment status, and even then, collectors must keep the conversation vague. The moment they mention you owe money, they've crossed the line.

Threatening arrest is illegal. Debt is a civil matter in Delaware. No judge will issue a warrant because you owe Discover Card $4,800. Collectors who claim otherwise are either ignorant or lying. Either way, report them to the Consumer Financial Protection Bureau.

Lying about debt amounts, adding unauthorized fees, or pretending to be attorneys when they're not—all banned under the FDCPA. If a collector falsifies documents or misrepresents the legal status of your debt, you can sue them for up to $1,000 plus attorney fees.

Delaware's 3-Year Statute of Limitations on Most Debts

Once a debt reaches a certain age in Delaware, collectors lose their legal right to sue you for it. This deadline is called the statute of limitations.

For credit card debt, medical bills, personal loans, and most written contracts, that clock stops at 3 years from your last payment or last account activity. Miss a payment in March 2021, and by March 2024, the debt becomes legally unenforceable in Delaware courts.

Mortgage debt also carries a 3-year limit under Delaware Code Title 10, Section 8106. Auto loans fall into the same category.

Student loans complicate things. Federal student loans have no statute of limitations,the government can pursue them indefinitely. Private student loans follow Delaware's 3-year rule for written contracts, but lenders often restart the clock through forbearance agreements or consolidation.

Once a collector wins a judgment against you, that judgment lasts 5 years. The collector can renew it, extending enforcement for another 5 years. Judgments carry more weight because a court already ruled in the creditor's favor.

Important: The statute of limitations does not erase your debt. It only prevents collectors from suing you. They can still call, send letters, and report the debt to credit bureaus (though credit reporting has its own 7-year federal limit).

How Collectors Restart the Clock

Making a payment on an old debt resets Delaware's 3-year statute of limitations. Even a $10 payment counts. This is why collectors push hard for "good faith" payments on ancient debts. Once you pay, the clock starts over, and they regain the right to sue.

Acknowledging the debt in writing can also restart the clock in some cases. Stick to validating the debt first. Never admit you owe anything until you see proof.

Force Collectors to Prove You Owe the Debt

Debt buyers purchase old accounts for pennies on the dollar, often with incomplete records. When a collector contacts you about a debt, your first move is to demand validation.

Send a debt validation letter within 30 days of the collector's first contact. This triggers their legal obligation under the FDCPA to provide:

• The original creditor's name
• The original debt amount
• Dates of last payment and account opening
• An itemized breakdown of current balance, including interest and fees
• Proof they own the debt or have authority to collect it

While they gather this information, they must pause collection activity. No calls, no letters, no lawsuits.

If they cannot validate the debt, they must stop pursuing it. Many collectors drop cases at this stage because their records are insufficient to prove the debt in court.

Send your validation letter via certified mail with return receipt. Keep copies of everything. If the collector ignores your request and continues calling, they've violated the FDCPA. Document the calls and consult a consumer rights attorney.

What Happens If a Collector Sues You in Delaware

Ignoring a debt lawsuit is the worst move you can make. If you don't respond within 20 days of being served in Delaware, the collector wins by default. They get a judgment, and then they can garnish your wages, freeze your bank account, or place a lien on your property.

File an answer with the court within that 20-day window. Your answer should challenge the collector's claims, especially if:

• The debt exceeds Delaware's 3-year statute of limitations
• The collector cannot prove they own the debt
• The amount is incorrect or includes unauthorized fees
• You already paid the debt or settled it

Delaware allows you to raise affirmative defenses in your answer. Statute of limitations is the most powerful one. If the debt is time-barred, the judge must dismiss the case.

If you're unsure how to respond, our bankruptcy screener can help you evaluate whether filing Chapter 7 or Chapter 13 makes more sense than fighting individual lawsuits. Bankruptcy stops collection lawsuits immediately and wipes out most unsecured debts.

Delaware Wage Garnishment Rules After a Judgment

If a collector wins a judgment against you, they can ask the court to garnish your wages. Delaware follows federal garnishment limits: collectors can take the lesser of 25% of your disposable income or the amount by which your weekly income exceeds 30 times the federal minimum wage.

At $7.25 per hour, that threshold is $217.50 per week. If you earn $600 per week after taxes, collectors can garnish up to $150 per week (25% of disposable income).

Certain income is protected from garnishment in Delaware:

• Social Security benefits
• Supplemental Security Income (SSI)
• Veterans benefits
• Unemployment compensation
• Workers' compensation
• Most pension and retirement accounts

If a collector freezes your bank account and that account contains only protected funds, file a claim of exemption with the court. Bring bank statements showing the source of the funds. The court should release the money.

How to Stop Collector Harassment in Delaware

You have the right to tell a debt collector to stop contacting you. Send a cease and desist letter via certified mail. After they receive it, they can only contact you to confirm they're stopping communication or to notify you of specific legal action like a lawsuit.

This does not erase the debt. It only stops the calls and letters. If the debt is legitimate and recent, expect a lawsuit after you send a cease and desist.

If you want to negotiate but need breathing room, tell the collector in writing that you'll only communicate via mail. They must honor this request.

When to Sue the Debt Collector

If a collector violates the FDCPA, you can sue them in Delaware state court or federal court within one year of the violation. You can recover:

• Up to $1,000 in statutory damages per case
• Actual damages (lost wages, emotional distress, etc.)
• Attorney fees and court costs

Delaware courts take FDCPA violations seriously. Collectors who repeatedly break the rules face class-action lawsuits and state enforcement actions.

Gather evidence: call logs, voicemails, letters, text messages. Even one violation is enough to file a claim.

Settlement vs. Bankruptcy: Which Makes Sense in Delaware

If you're drowning in multiple debts, settling or filing bankruptcy may be smarter than fighting collectors one by one.

Debt settlement works when you owe less than $10,000 and can scrape together a lump sum. Collectors often accept 40-60% of the balance if you pay immediately. The settled amount gets reported to credit bureaus as "settled for less than owed," which hurts your credit but less than a judgment or bankruptcy.

Chapter 7 bankruptcy eliminates most unsecured debts in 4-6 months. In Delaware, you can keep a home with up to $125,000 in equity (or $25,000 if you opt for the wildcard exemption). Your car is protected up to $15,000 in value. If you earn below Delaware's median income ($63,314 for a single filer in 2024), you likely qualify.

Chapter 13 bankruptcy stops wage garnishments and spreads repayment over 3-5 years. You keep all your property, and unsecured creditors often receive only a fraction of what you owe. This makes sense if you're behind on a mortgage or car loan and need time to catch up.

Run the numbers before deciding. Filing bankruptcy in Delaware may cost less than settling five different debts, and it stops all collection activity immediately.

Where to Report Illegal Collection Practices

If a collector violates Delaware or federal law, report them to:

• Consumer Financial Protection Bureau: Submit complaints at consumerfinance.gov or call 855-411-2372
• Delaware Attorney General's Office: Consumer Protection Unit, 820 N. French Street, Wilmington, DE 19801, or call 800-220-5424
• Federal Trade Commission: File a report at reportfraud.ftc.gov

Your complaint may not result in immediate action, but agencies use these reports to identify patterns and target bad actors. Filing also creates a paper trail if you decide to sue.

Your Next Move Depends on the Debt's Age and Amount

If the debt is older than 3 years, tell the collector it's time-barred under Delaware law. Do not make a payment. If they sue anyway, raise the statute of limitations as a defense in your answer.

If the debt is recent but unaffordable, validate it first. Then decide whether to settle, negotiate a payment plan, or file bankruptcy.

If you're already facing a lawsuit, file your answer within 20 days. Miss that deadline and you lose by default. Need help deciding whether bankruptcy makes sense? Our screener takes 60 seconds and shows you which chapter fits your situation.

Debt collectors count on you not knowing the rules. Now you do.