Bankrupt in South Dakota?
American bankruptcy laws can generally be found in the United States Code under Title 11. There you’ll find everything you’d ever want to know about bankruptcy and bankruptcy protection as it pertains to the federal government. But, as a union of 50 different states, there are bound to be different bankruptcy laws that vary by state. While there might not be any wholesale differences between one state and the other, there are still subtle differences to be found in each state. For instance, South Dakota bankruptcy laws might differ slightly from laws in a state like North Dakota. For South Dakota residents, it can be an important piece of knowledge to understand those differences and make use of them to their fullest extent.
As one of the least populated states in the union, South Dakota has a history of pioneering frontiersman staking out its land and making quality homesteads in spite of the harsh conditions. This individualistic spirit can be tough rein in, especially when it comes to asking for help. As a state of rugged individualists, South Dakota might often find it difficult to even toy with the thought of bankruptcy. Unfortunately, in some cases it’s completely unavoidable. If you don’t want your land repossessed and your entire life flushed down the figurative drain, you’re going to need to know a little bit about South Dakota bankruptcy laws.
In large part, you’ll have to adhere to federal law when it comes to filing for Chapter 7. After all, Chapter 7 is a creation of the federal government. You will, however, have to list all your assets (including property) that you want to exempt. You’ll also have to compile a list of liabilities, expenditures, income, unexpired leases, executory contracts, and a statement of current financial affairs. Then, you will need to take all this information down to the bankruptcy court in your district.
South Dakota also features a few exemptions when it comes to bankruptcy. For instance, virtually any land owned by the debtor can be exempt using the Homestead Exemption. You can also keep enough clothing, fuel, and food to last a year. Up to $200.00 worth of books can be exempted as well as any pictures or other personal property. You can keep up to $4,000.00 worth of personal property and $6,000.00 worth of property if you’re the head of household. While it’s never an easy time, knowing the laws can always make it a bit simpler.