How to File for Bankruptcy in South Dakota

Because of the economic situation, we are all face these days; people are starting to look into bankruptcy for some relief from their financial struggles.  There are 2.24 filings on average per capita (per 1,000 people) in South Dakota and roughly, 90% of them are Chapter 7 of the bankruptcy code.  Since the new “means” test was set up to help limit bankruptcy filings to those who really are eligible for bankruptcy, it is more challenging to file.  So how do you know if you are a candidate for bankruptcy and if it is the best decision for you?

Finding a Bankruptcy Attorney

A bankruptcy attorney can help assess your financial situation and which type of bankruptcy will fit your debts vs. assets ratio.  An attorney can answer any questions you many have about bankruptcy laws, make sure you maximize your exemptions, and represent you in front of the bankruptcy trustee.  Make sure the attorney you choose has a reputable standing with his/her clients and experience handling case like yours.

Bankruptcy Options

Depending on what you have in real and personal property and what of these assets you would like to retain, there are a couple different types of bankruptcy to consider:

• If you have limited or no assets to protect, then Chapter 7 will give you a fresh start without any debt.
• If you have more valuable assets that you are not willing to liquidate, then Chapter 13 will give you the option to pay off your debts within a specified period of time (usually three to five years).

South Dakota Exemptions

Since most all of the bankruptcy cases in South Dakota are filed under Chapter 7, it is important to know what exemptions can be obtained.  Although South Dakota does not allow its residents to utilize the federal exemption list, the state’s exemption list is very accommodating:

Filing the Petition

After determining which chapter of the bankruptcy code to file under, looking into all exemption options and completing any required financial counselling, you can begin filing your petition for bankruptcy.  The bankruptcy trustee will then review the case and call a 341 meeting of the creditors so that any questions they may have relating to the case can be answered.  When and if your case is approved, you will be able to get that clean slate in the case of Chapter 7 or work towards being debt-free within just a few years with the Chapter 13 bankruptcy.