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South Dakota Bankruptcy Laws



South Dakota Bankruptcy Laws should be known by every resident of the state of South Dakota. You may be confident that you are keeping up with your monthly bills and credit card payments, but this can change in just a snap. There are things out of your control that happen to upset your budget enough that you won’t be able to pay your monthly obligations. Creditors begin calling you night and day and you’ll be receiving tons of mails demanding you to pay up or be sued. South Dakota bankruptcy laws give every citizen of South Dakota the chance to invoke bankruptcy protection.

Although this may be the case, not all who submit bankruptcy applications will be admitted into the program. In 2005, the campaign to thoroughly screen debtors applying for bankruptcy protection was one of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act. Now, a credit counseling program certification is mandatory for every debtor who wants to apply for bankruptcy. The counseling should be taken 6 months before and the certification should be submitted together with the necessary papers.

It is good to be informed. Primarily, knowing what bankruptcy protection best applies in your situation is vital. Do you want to start anew and get rid of your debts or are you responsible enough to want to pay all your debts? Chapter 7 is usually referred as liquidation bankruptcy because your dischargeable debts will be eliminated. Non-exempt assets may be sold and the proceeds will be distributed to the creditors you owe. It is the duty of the trustee to facilitate the whole liquidation process as he is assigned by the court to do so. It is also the responsibility of the trustee to review each case if it is eligible for Chapter 7.

If your Chapter 7 application is denied, the court can either dismiss the case or may recommend a Chapter 13 bankruptcy. Should you opt to choose the latter, there will be another proceeding for this case. Chapter 13 is known as debt reorganization bankruptcy. One of its provisions is an implementation of a repayment plan devised by the debtor. The debtor presents the plan in court and the bankruptcy judge will determine its viability. Should the judge approve the plan, regardless of the creditor’s protests, it will be implemented by the court-appointed trustee. A monthly stipend will be given by the debtor to the trustee and the trustee in turn, will distribute the money to the creditors according to a priority structure determined by the bankruptcy court of South Dakota.

South Dakota bankruptcy laws have defined the difference between exemptions and non-exempt assets. The exemptions are those assets protected during bankruptcy proceedings. The following is a list of bankruptcy exemptions:

• Your home worth $300,000, and is reduced to $175,000 if over 70 years old;
• Family library up to $200;
• Additional personal property worth $6,000 for head of household and $4,000 for non-head of household;
• Clothing, fuel, and provisions for a year;
• Any earned wages for the last 60 days; and
• Other benefits like unemployment compensation, retirement benefits, and more.

Even though a lawyer’s service is not emphasized, bankruptcy cases are quite complex and the information presented here are just part of the labyrinthine process of bankruptcy.