Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
Protecting your assets, personal property, wages and savings is most important when filing for bankruptcy. In general, US bankruptcy laws do not require you to sell everything you own to cover your debts. However, what you can and cannot claim does depend on the state you live in. This article will help to familiarise you with the state exemptions for South Dakota.
In short, exemptions are laws that protect a percentage of your property (or the equity you have) from creditors, as long as you have not pledged that property as collateral for a loan. There is a Federal Bankruptcy Code, which provides a list of exemptions, however states are not compelled to follow this code. Your state can require you to follow state exemption laws instead.
South Dakota residents must follow the state exemption laws when filing for bankruptcy. The only Federal exemptions that apply are those exemptions listed in Federal laws other than the Federal Bankruptcy Code.
A Guide to State Exemptions for South Dakota:
- As with most states, there is a homestead exemption for residents of South Dakota. Here, the homestead is protected to an unlimited value, as long as it is no larger than one acre for a home in town, or no larger than one hundred and sixty acres for a home outside town. The sale proceeds from your home are also protected – up to $30 000 for most people, except those over 70 years of age, who can claim up to $170 000. It is important to remember that only for residents who have been living in South Dakota for a minimum of three years and four months are able to claim exemptions greater than $125 000.
- You are also entitled to wage exemptions, which limit how much can be taken from your wage in debt collection by creditors. In South Dakota, wages earned sixty days prior to filing for bankruptcy are protected, as long as they are needed to support a family. There are also Federal non-bankruptcy laws that apply to wage garnishment.
Further state exemptions for South Dakota entitle you to protection of certain items of personal property, pension or retirement savings and life insurance.
Knowing your entitlements is the first step in protecting your property when faced with bankruptcy or judgments. It is important to be able to fill in the required bankruptcy forms accurately so that you can be confident that you protecting what you are legally entitled to protect.
Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=SD#exemptions
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