South Dakota bankruptcy laws: What are the Laws Regarding Bankruptcies in the State of South Dakota
The bankruptcy laws in South Dakota reflect federal laws, and similarly, they compare to most state laws in the Midwest. The exemptions that South Dakota bankruptcy laws allow are often considered generous, and in a majority of the cases, a person can keep their home or property through any South Dakota bankruptcy. The requirements are not there to prohibit you from filing, and they are there to help guide you through the bankruptcy process and save your credit in the long term.
The laws in South Dakota requires a person to complete a credit counseling course six months before officially filing for bankruptcy. An individual is also expected to attend a debtor education course before a final settlement is agreed upon.
Individuals, families, and corporations are allowed to file for different kinds of bankruptcy in the state of South Dakota. Personal bankruptcies are generally filed under Chapter 7 and Chapter 13, while companies and corporations file typically under Chapter 11. They are the most common options.
Chapter 7 bankruptcy in South Dakota
If a person and family have a considerable amount of unsecured debt with a lack of income, they may be entitled to file under Chapter 7 bankruptcy. It is usually referred to as liquidation because a person or family get a fresh start and a clean slate after their creditor receives the necessary assets to cover the debt.
A judge at the bankruptcy court often makes the final decision, but a person can apply for Chapter 7 if the income that they earn falls below the state’s median average. The median amount of household salary in the state of South Dakota is around $45,861. If your family qualifies for Chapter 7, they usually receive the following exemptions:
- 100% of homestead
- 60 days worth of income earnings if needed to support the family
- Food and fuel necessary for one year
Chapter 11 bankruptcy in South Dakota
If a corporation or company is facing economic hardship, the owner has the right to file for a Chapter 11 bankruptcy. It allows the corporation to gather up their finances, rearrange employees, and address logistical problems to turn more profit and reduce debt.
Chapter 13 bankruptcy in South Dakota
Sometimes, a family is forced to file a Chapter 13 if it is proven that they are capable of making structured payments over the next three to five years. It is sometimes referred to as "reorganization," and the family may be forced to eliminate 25% or more of their debt. Filing under Chapter 13 involves the family being able to keep certain assets which are a significant advantage.
Taxes in South Dakota
If a person or family files for Chapter 7, the creditor can retrieve their tax returns as forms of assets. Tax returns are generally safe under Chapter 13.
Filing for South Dakota Bankruptcy
Your Property in South Dakota Bankruptcies
In Chapter 7 bankruptcy, the trustee may collect your property and sell it to pay out your creditors as much as possible. However, the trustee cannot take all of your property as some of it is protected by state law.
1. Personal Property
The state of South Dakota has specific state laws that protect your property. The items that are protected by bankruptcy laws in South Dakota are the family bible, church pews, family photos, medical aids. Even if your property is not explicitly listed and protected property, you may nevertheless keep it during bankruptcy.
2. Real Property
Real property is a lot more complicated as it is generally protected in bankruptcy by federal law or state "homestead exemptions," and South Dakota has its homestead law that trumps the national law scheme. So, in South Dakota, a person can save her home if the equity in the house is less than $60,000.
How to Search for South Dakota Bankruptcies
Bankruptcies are handled in courts, so most of the information in them is a matter of public records. The people who search for South Dakota bankruptcies are usually employers and landlords, so the data in these court records is valuable. If you want to search for South Dakota bankruptcies that are registered to your name or the name of another person, you can use a public records search directory, like GoLookUp.
The name-based search engine will scan public records once you provide it with a name, so you will get information about people within minutes. A South Dakota bankruptcies search about yourself will help you find out if there are South Dakota bankruptcies that are accidentally registered to your name, and ask to delete them from the proper authorities.