South Dakota Bankruptcy Defense Lawyers: Your Financial Lifeline
Are you DROWNING in debt and feeling like there’s no way out? We’ve got GOOD NEWS for you – bankruptcy may be the lifeline you need to get back on solid financial ground. But navigating the complex world of bankruptcy law can be OVERWHELMING without the right guide. That’s where our experienced South Dakota bankruptcy defense lawyers come in.At Delancey Street, we’ve helped THOUSANDS of South Dakota residents just like you find debt relief and a fresh financial start through bankruptcy. We know the ins and outs of both federal bankruptcy laws and South Dakota‘s specific regulations. Our skilled attorneys will be by your side every step of the way, from determining if bankruptcy is right for you to filing your case and representing you in court.In this comprehensive guide, we’ll break down everything you need to know about bankruptcy in South Dakota and how our expert legal team can help. So take a deep breath, grab a cup of coffee, and let’s dive in!
Understanding Bankruptcy in South Dakota: The Basics
Before we get into the nitty-gritty details, let’s cover some bankruptcy basics. Bankruptcy is a legal process that allows individuals or businesses overwhelmed by debt to either eliminate their debts or create a manageable repayment plan. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy: A Fresh Start
Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” allows you to discharge most of your unsecured debts like credit card balances and medical bills. In exchange, you may have to give up some non-exempt property to be sold to pay off creditors. But don’t worry – South Dakota has generous exemption laws that allow most filers to keep their essential property.To qualify for Chapter 7 in South Dakota, you‘ll need to pass the “means test” which compares your income to the state median. As of 2023, the median annual income for a single-person household in South Dakota is $57,273. If your income is below this threshold, you automatically qualify. If it‘s above, you may still qualify based on your disposable income after allowed expenses.
Chapter 13 Bankruptcy: Reorganizing Your Debts
Chapter 13 bankruptcy is often called a “wage earner’s plan.” It allows you to keep all of your property while repaying some or all of your debts through a 3-5 year repayment plan. This can be a good option if you have a steady income but need help catching up on missed payments or lowering your overall debt burden.To file Chapter 13 in South Dakota, you must have a regular income and unsecured debts below $419,275 and secured debts below $1,257,850 (as of 2023). These limits are adjusted periodically for inflation.Now that we‘ve covered the basics, let’s look at how our South Dakota bankruptcy lawyers can guide you through the process.
How Our South Dakota Bankruptcy Defense Lawyers Can Help
Filing for bankruptcy isn‘t a decision to be taken lightly. It’s a complex legal process with long-term consequences for your financial future. That’s why having an experienced bankruptcy attorney in your corner is CRUCIAL. Here‘s how our team at Delancey Street can help:
1. Determining if Bankruptcy is Right for You
The first step is figuring out if bankruptcy is truly your best option. Our attorneys will carefully review your financial situation, including your income, assets, debts, and expenses. We’ll explain all of your debt relief options and help you make an informed decision.For example, we recently worked with a client named Sarah who was struggling with $50,000 in credit card debt after a job loss. After reviewing her situation, we determined that debt settlement might be a better option than bankruptcy. We negotiated with her creditors and were able to settle her debts for about 40% of what she owed, saving her thousands and avoiding bankruptcy.
2. Choosing the Right Type of Bankruptcy
If bankruptcy is the right choice, we’ll help you decide between Chapter 7 and Chapter 13 based on your unique circumstances. This decision can have a major impact on your financial future, so it‘s not one to be taken lightly.Consider the case of John, a small business owner who came to us with $100,000 in business debts. While he initially wanted to file Chapter 7 to discharge his debts, we advised him that Chapter 13 would allow him to keep his business assets and repay his debts over time. This allowed John to stay in business and eventually become debt-free.
3. Navigating the Means Test
The means test can be one of the most confusing parts of filing for bankruptcy. Our attorneys are well-versed in the intricacies of the means test and can help you navigate it successfully. We’ll carefully review your income and expenses to determine if you qualify for Chapter 7 or if Chapter 13 is a better fit.
4. Maximizing Your Property Exemptions
South Dakota has some of the most generous bankruptcy exemptions in the country. Our lawyers know these exemptions inside and out and will work to ensure you keep as much of your property as possible. Here‘s a quick overview of some key South Dakota bankruptcy exemptions:
| Exemption Type | Amount |
|---|---|
| Homestead | Unlimited value for up to 1 acre in town or 160 acres elsewhere |
| Personal Property | Up to $7,000 total value |
| Motor Vehicle | Up to $5,000 equity |
| Retirement Accounts | Fully exempt |
| Tools of Trade | Up to $10,000 value |
5. Preparing and Filing Your Bankruptcy Petition
Filing for bankruptcy involves a mountain of paperwork and strict deadlines. One small mistake could delay your case or even get it dismissed. Our experienced attorneys will handle all the complex paperwork, ensuring everything is filled out correctly and filed on time.
6. Representing You at the 341 Meeting of Creditors
About a month after filing, you’ll need to attend a 341 meeting of creditors. This can be an intimidating experience, but don’t worry – we’ll be right there with you. We’ll prepare you for what to expect and handle any questions or objections from the trustee or creditors.
7. Addressing Any Challenges to Your Bankruptcy
Sometimes creditors or the trustee may object to parts of your bankruptcy filing. Our skilled litigators will vigorously defend your rights and interests, fighting to ensure you receive the debt relief you deserve.For instance, we recently represented a client whose ex-spouse challenged the dischargeability of a debt in his Chapter 7 case. We successfully argued that the debt was not in the nature of alimony or support and therefore was dischargeable under 11 U.S.C. § 523(a)(5). This saved our client from having to repay over $50,000 in debt.
8. Guiding You Through the Entire Process
From start to finish, we‘ll be by your side every step of the way. We’ll keep you informed about the progress of your case, answer any questions you have, and provide the support and guidance you need during this challenging time.Now that you understand how we can help, let‘s dive deeper into some key aspects of bankruptcy law in South Dakota.
South Dakota Bankruptcy Law: Key Points to Know
While bankruptcy is primarily governed by federal law, there are some important South Dakota-specific rules and regulations you should be aware of. Here are some key points our bankruptcy defense lawyers want you to know:
South Dakota’s Generous Homestead Exemption
One of the biggest advantages of filing bankruptcy in South Dakota is the state’s unlimited homestead exemption. Under S.D. Codified Laws § 43-45-3, you can exempt an unlimited amount of equity in your primary residence, as long as it’s on no more than one acre of land in a town or city, or 160 acres elsewhere.This means that in most cases, you can keep your home even if you file for Chapter 7 bankruptcy. However, there are some limitations. For example, if you acquired the property within 1,215 days (about 3.3 years) before filing for bankruptcy, your exemption is limited to $170,350 (as of 2023).
The “Wildcard” Exemption
South Dakota also offers a “wildcard” exemption of up to $7,000 that can be applied to any property of your choosing (S.D. Codified Laws § 43-45-4). This can be incredibly useful for protecting assets that might otherwise be non-exempt.For example, we recently helped a client use this wildcard exemption to protect a valuable piece of jewelry that had sentimental value. Without this exemption, she would have had to surrender the item to the bankruptcy trustee.
Credit Counseling and Debtor Education Requirements
Before you can file for bankruptcy in South Dakota, you must complete a credit counseling course from an approved provider. Then, before your debts can be discharged, you must complete a debtor education course. Our team can help you find approved courses and ensure you meet these requirements.
South Dakota’s Median Income for Means Test
As mentioned earlier, South Dakota’s median income is used to determine eligibility for Chapter 7 bankruptcy. As of 2023, here are the median income levels for different household sizes:
| Household Size | Annual Median Income |
|---|---|
| 1 person | $57,273 |
| 2 people | $75,746 |
| 3 people | $87,172 |
| 4 people | $103,847 |
Remember, even if your income is above these levels, you may still qualify for Chapter 7 based on your disposable income after allowed expenses. Our attorneys can help you navigate this complex calculation.
Recent Changes to Bankruptcy Law in South Dakota
It’s important to stay up-to-date on changes to bankruptcy law that could affect your case. For example, in 2019, the Small Business Reorganization Act created a new Subchapter V of Chapter 11, which simplifies the bankruptcy process for small businesses. This can be a game-changer for struggling small business owners in South Dakota.Another recent change is the temporary increase in the debt limit for Chapter 13 bankruptcy. Under the COVID-19 Bankruptcy Relief Extension Act, the debt limits were raised to $2,750,000 for both secured and unsecured debt through March 27, 2024. This allows more South Dakota residents to take advantage of Chapter 13 bankruptcy.Our attorneys stay on top of these changes and can explain how they might impact your specific situation.
Common Bankruptcy Myths Debunked
There’s a lot of misinformation out there about bankruptcy. Let‘s clear up some common myths:
Myth 1: You’ll Lose Everything in Bankruptcy
FACT: Thanks to South Dakota’s generous exemptions, most people who file for bankruptcy keep most or all of their property. In Chapter 13, you typically keep all your property while repaying some of your debts.
Myth 2: Bankruptcy Will Ruin Your Credit Forever
FACT: While bankruptcy does impact your credit score, it’s not permanent. Many of our clients are able to rebuild their credit to good or excellent levels within 2-3 years after bankruptcy.
Myth 3: You Can Never File for Bankruptcy Again
FACT: While there are waiting periods between bankruptcies, you can file again if needed. The waiting period is generally 8 years between Chapter 7 filings, or 2 years between Chapter 13 filings.
Myth 4: You Can’t Discharge Tax Debts in Bankruptcy
FACT: While it‘s true that many tax debts can‘t be discharged, some income tax debts can be eliminated in bankruptcy if they meet certain criteria. Our attorneys can review your tax debts to see if they might be dischargeable.
Myth 5: You’ll Never Be Able to Get Credit Again After Bankruptcy
FACT: Many of our clients are able to obtain credit cards and even mortgages after bankruptcy. In fact, you may be a more attractive borrower to some lenders because you can’t file for bankruptcy again for several years.