If you are facing overwhelming amounts of debt and need a way out, consider filing for bankruptcy. South Dakota’s bankruptcy laws protect some of your assets as you work to rid yourself of overwhelming debt and start over with your finances.

Bankruptcy Exemptions

South Dakota bankruptcy law dictates the assets that you can keep while you file bankruptcy. These are called exemptions. The state’s exemptions are as follows:

• Up to $300,000 for a homestead, or $170,000 if you are over age 70 or have lost your spouse and not remarried
• Up to $30,000 in proceeds from the sale of your home
• Family pictures
• Church pew
• Burial plots
• Fmaily library, up to $200
• Clothing for a year
• Provisions for a year
• Fuel for a year
• Any earned wages owed in the 60 days before filing
• Victim’s compensation award
• Up to $6,000 in additional personal property for head of household
• Up to $4,000 in additional personal property for non-head of household
• Up to $250 per month in an annuity contract
• Up to $20,000 for life and health insurance
• Retirement benefits and municipal pensions
• Workman’s compensation
• Unemployment compensation
• South Dakota Retirement System retirement benefits

Some voluntary loans, like your mortgage, are not wiped out during bankruptcy. If you have more equity in your home than is allowed under the exemption laws, your lender can still foreclose on it. If you wish to keep your home and it fits within the exemption structure, you must keep paying your mortgage. To keep your car, you must reaffirm the debt within 45 days of the 341 meeting, or the lender that holds your car loan can repossess it, even if you keep paying.

Chapter 7 Bankruptcy Information

Chapter 7 bankruptcy protection wipes out most of your debts by selling your assets and then erasing the debts. To file Chapter 7 in South Dakota, first you must pass the means test to prove that your expendable income is at or below the state’s median level.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy allows debtors to attempt to repay their debts with court supervision and protection. This form of bankruptcy is best for those who do not qualify for Chapter 7 or who have many debts that cannot be erased.