Start My Answer

How to Get Debt Relief in Delaware

Dena Standley | October 19, 2022

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

You can find the financial relief you need.

Summary: If you're struggling with debt in Delaware, SoloSuit can help you find the relief you need.

Unsecured loans can quickly change from being your way out of a bind into a nightmare. Even the most financially conscious person can have unmanageable debt because of one financial hiccup. The extraordinarily high-interest rates on most payday loans add to debt woes for many who fall into the trap of needing these quick loans.

If you live in Delaware and find yourself in too many unsecured debts, you are not alone. Statistics show that the average Delawarean cardholder has a credit card debt of $6,736 as of early 2022. And with increasing inflation, high energy costs, and growing global instability, more and more people rely on credit cards.

If you feel overwhelmed with credit cards or other unsecured loans, you have a few options as a resident of Delaware:

  • Can you get a payday loan?
  • Could you convince your lender to settle?
  • What about debt consolidation?
  • Can you refinance your mortgage or car loan?
  • Is filing for bankruptcy an option in Delaware?

Let's find out.

Can you use a payday loan to relieve debt in Delaware?

Delaware has one of the most lenient laws governing payday loans. While some states have a maximum payday loan of $500, you can get up to $1000 in Delaware.

A payday loan is a quick loan you borrow and have to pay on your next payday. These loans don't come cheap. Delaware doesn't limit the interest a lender can charge on these loans. The lender decides what to charge you. 300% APR is considered a competitive rate. And it can go as high as 500%.

So if you are considering a payday loan to get you out of a fix, best read between the lines before you agree to it.

Payday loans are best to use when settling small debts. For example, if you suddenly found yourself unemployed but recently got a job, you can borrow the money to help you keep your repayments up to date until you get paid. It's advisable only to use payday loans if you know you can pay the high interest. Otherwise, you may quickly regret the decision as it will get you deeper into debt.

This table summarizes the terms for payday loans in Delaware.

Delaware Payday Loan Terms

Maximum amount


Loan term

59 days or fewer


No regulation, but the lender must expressly spell the terms in the agreement


For more laws on payday loans in Delaware, visit the official website.

Can you work out a debt settlement in Delaware?

You settle a debt by working out a repayment plan with your creditor. Most creditors prefer a lump-sum offer to settle because this reduces the chances of future defaults. You have two options:

  • Do it Yourself: You can work out a DIY settlement with the creditor. For this, you need to negotiate directly with the lender. After making an offer and the lender agrees, make sure you have the agreement in writing before settling the account. Having written communication will save you from future back-and-forths if the creditor tries to go back on their word.

    Working out a self-guided debt settlement can be tough, but it can be your only way out. Creditors are in business for money, and if you are offering them something, they may prefer to take it rather than risk getting nothing at all.

  • Hire a debt settlement company: These companies charge for their services. You pay them to help you negotiate with your creditor. Before they can represent you, you need to open a savings account where you deposit money monthly which they then use to settle your accounts. This option is great if you don't have the time to deal with creditors yourself. It can save you a ton of calculating and going over your accounts.

However, using debt settlement companies has its challenges. For one, you pay fees for the services when money is your problem in the first place. Also, the agency will delay payments on all your accounts for at least two months until they have a substantial amount in the new savings account to offer the creditors. All your accounts are delinquent as you wait, and your credit is destroyed. You may also start getting debt collection calls and threats of lawsuits.

Some debt settlement companies may require a large debt to work with you. Some only start taking clients with as high as $7500 in debt.

Whether you go with a debt settlement agency or choose to settle the debt yourself, remember that if you succeed and the creditor forgives more than $600, the IRS considers this amount taxable income.

Check out SoloSuit's video on debt settlement to learn more about settlement process

Try consolidating your debts into one

Debt consolidation is taking out one larger loan to pay off your current debts so that you are left with one account instead of several. It's great because it helps you get organized. Now you have just one instead of multiple due dates and different interest rates to keep up with. It gives you a sense of relief, but there's more to consolidating debt than meets the eye.

Debt consolidation promises you that you can borrow enough money to get out of debt. That doesn't sound right. However, if you are desperate, the promise may lure you into borrowing to pay the debt. In reality, you're still in debt.

When consolidating debt can work for you:

  • Get a lower interest rate on the new loan.
  • Make sure you are not accruing more debt on your now-paid accounts.
  • Pay the new loan as soon as possible.

Refinance your mortgage or car loan

A refinance is a new loan you borrow to pay the old one. It's like loan consolidation, except you can only refinance auto or home loans. If you are drowning in debt, a refinance may work for you as you sort out your financial house. You can free up some money to settle your other debts.

What if you have to file for bankruptcy in Delaware?

There's almost nothing good to say about bankruptcy. However, Delaware has some of the best terms for chapter 7 bankruptcy. You can keep your home if you have $125,000 or less in equity.

As the last of your last resorts, apply for bankruptcy if you really can't pay off your debts. If anything, it will give you a clean slate. Your debts will drop off, and you can start building your credit afresh. You may lose some of your property and find it hard to access credit, but it can be worth it for the peace of mind of not dealing with debt collectors and debt-collection lawsuits.

Applying for bankruptcy is daunting, but you can find help to deal with the process here:

  • National Foundation for Credit Counseling (NFCC)
  • The American Bankruptcy Institute (ABI)

You can find debt relief in Delaware

Delaware also has free community help for those struggling with debt.

  • Delaware Community Reinvestment Action Council (DCRAC): a non-profit organization that uses advocacy, education, legislation and outreach to ensure equal access to credit and capital
  • Stand by Me: state-funded program that offers free, private, one-on-one financial coaching from trained, skilled professionals who help you achieve your financial goals
  • Community Resource and Assistance Services: emergency financial assistance for rent, utilities, emergency shelter, and critical needs
  • Emergency Assistance Services: emergency financial assistance for rent, utilities, emergency shelter, and critical needs
  • General Assistance: a state-funded program that provides cash assistance to people who do not qualify for federally-funded programs like Social Security or TANF

Struggling with debt is not in the slightest way easy. If you evaluate your situation, you can find a way to get back control of your finances and build your credit score one step at a time. If you've been sued for debt in Delaware, Solosuit can help you respond to the debt lawsuit and win in court. Check out SoloSuit's services today to learn more about your options.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.

Ask a Question

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court