A South Dakota Trustee Is Assigned To Your Bankruptcy Filing
A bankruptcy trustee is assigned to your bankruptcy case to review the paperwork and look for non-exempt belongings that you may own. You have to submit such forms as a recent tax return to the trustee. If you have non-exempt belongings, the trustee may manage the sale and liquidation of those belongings.
See the Chapter 7 and Chapter 13 trustees in South Dakota for bankruptcy district, name and contact information. As a Chapter 13 bankruptcy is much longer, you may have more interaction with the Chapter 13 trustee or someone from his/her office.
Debts You Can Discharge
While your plan is in force, creditors must stop collection efforts. And after you make all the payments under your plan, the court will officially discharge manybut not allof your debts. Here are some of the most common kinds of debts discharged through Chapter 13 plans:
- criminal fines or restitution payments
- any debts related fraud youve committed or injuries youve caused, and
- some long-term debts that are secured by collateral.
Working With An Attorney
For most people, it is usually in ones best interest to work with a bankruptcy attorney. A bankruptcy attorney is there to represent you and not the creditors.
An attorney is also accustomed with exemption laws. In addition, they can come up with creative strategies to keep your assets through practical repayment strategies that are fair to everyone involved.
While you may have the fight and ability to manage a Bankruptcy on your own, it tends to make things a lot easier on an already stressful situation, especially when there is so much at stake.
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File Your Petition In Bankruptcy Court
After youve got your petition and supporting paperwork in order, you must file it in the correct South Dakota district court. You can visit our bankruptcy court page for Sioux Falls, South Dakota to find your local court and other important information, like local rules and requirements that you might have to meet when you file.
When you file your petition, you must pay the filing fee by cash or money order, unless you apply for a fee waiver or payment in installments.
Estimate Whether You Will Qualify For Chapter 7 Bankruptcy In South Dakota
As stated above, you often have to qualify to file Chapter 7 bankruptcy. Qualification is based on US means testing. The means testing is based on the household income and size of the household for South Dakota.
Bankruptcy Means Test In South Dakota
The bankruptcy means test in South Dakota often changes every 6 months. To help, we built the following bankruptcy means test calculator to help you estimate qualification, understand the cost and compare bankruptcy alternatives.
South Dakota Chapter 7 Bankruptcy Income Limits
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Understand The Differences Between Chapter 7 And Chapter 13
Chapter 7 and Chapter 13 bankruptcy are the most common consumer bankruptcy filed in the United States. You need to know the difference because one chapter is more expensive and also often takes much longer.
Chapter 7 Bankruptcy in South Dakota
A Chapter 7 bankruptcy is referred to as liquidation bankruptcy. In many cases, bankruptcy filers do not lose their home or vehicle by using bankruptcy exemptions. We will cover how your belongings may be at risk below.
Heres what you need to know about filing Chapter 7 bankruptcy in South Dakota.
Chapter 13 Bankruptcy in South Dakota
Heres what you need to know about filing Chapter 13 bankruptcy in South Dakota.
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North Dakota Bankruptcy Process How To File Bankruptcy In North Dakota
2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.
2005 Bankruptcy Act Means TestUnder the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for North Dakota. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13.
Gathering PaperworkTo begin the bankruptcy process you must itemize your current income sources major financial transactions for the last two years monthly living expenses debts and property . You should also collect your tax returns for the last two years, deeds to any real estate you own, your car titles, and the documents for any loans you may have.
The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived.
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Bankruptcy Matters Interview Series
Organized and produced by the State Bar of South Dakota Debtor-Creditor Committee, this interview series will expose different perspectives on bankruptcy in South Dakota. You will hear from industry experts on the South Dakota bankruptcy process and how you can be involved in this growing area of the law. State Bar Past-President Steve Huff takes us on a journey to learn more about why Bankruptcy Matters. Click the title of the interview to watch on our State Bar YouTube channel.
In this session of our Bankruptcy Series, State Bar Past President Steve Huff interviews federal bankruptcy judge Charles Nail on his journey to work in bankruptcy law and how important it is for lawyers to consider this practice area at the present time.
In this session of our Bankruptcy Series, State Bar Past President Steve Huff interviews attorneys Laura Ask and Jack Nichols on their work for the debtor bar, advice for others looking to take on this work including staffing and software needs, and the value of connecting with others to be successful.
In this session of our Bankruptcy Series, State Bar Past President Steve Huff interviews bankruptcy trustees Lee Ann Pierce and Dale Wein on their observations of the bankruptcy bar in South Dakota and their advice for lawyers considering taking on bankruptcy work for their practice.
What Is A Property Exemption
Generally speaking, bankruptcy exempt propertiesrefer to any type of property that cannot be seized by creditors as a means of satisfying a borrowers debts. In contrast, property that can be taken by creditors to pay off a borrowers debts is called, non-exempt property. These definitions and what qualifies as exempt or non-exempt property will vary by state.
Property that is typically exempt after a bankruptcy proceeding includes pensions, clothing, household appliances, motor vehicles, jewelry , and any equipment that is necessary to perform a job. Thus, if listed under the bankruptcy law in the debtors state, a creditor will not be able to seize any of these items.
However, a creditor will be able to seize non-exempt property to pay down a borrowers debts, such as bank accounts, cash, family heirlooms, vacation homes, and/or additional motor vehicles.
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South Dakota Bankruptcy Attorney For 57709
When it comes to individual filing options, Chapter 7 is faster but has a cutoff on income, while Chapter 13 typically involves a 5-year payment plan. Choosing between the two can be confusing for example, if you attempt to file for Chapter 7 as an individual, but your income is above the annual limit, you will need to show that relies on your expenses and income.
An experienced bankruptcy attorney can help you make the right decisions and coach you on the right answers, and will counsel you on whether Chapter 7 or Chapter 13 would be better for your particular situation.
While technically you are allowed to file your own papers, most people who arent familiar with the process dont know how to fill out the paperwork correctly and provide the required information. If you file without an attorney, and the trustee assigned to your case follows up by requesting additional information, in order to confirm the claims you made in your documents, will you know how to prove it is accurate? A bankruptcy attorney can be a valuable resource to you in court that knows exactly what information the court wants and needs. One of the worst mistakes you can make is to provide incorrect paperwork and not know what you have to do to fix your errors. Judges frown on this waste of the courts time.
Is There An Income Limit For Chapter 7 Bankruptcy
To automatically qualify for Chapter 7, your disposable income must be below the median level for your state. That number varies from state-to-state. If your disposable income exceeds the median in your state, you still may be able to qualify through a means test that includes looking at your income and reasonable expenses to see if you can get that number under the median income for your state.
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What To Do After Chapter 7 Bankruptcy
Push the re-start button on your financial life.
Thats the first thing anyone should do after having debts discharged in Chapter 7 bankruptcy. Hopefully, that re-start button includes a plan for reduced spending and paying all bills on time.
The easiest way to do that is to draw up a budget that realistically accounts for your income and expenses.
If youre not good at that, call a nonprofit credit counseling agency and get some free assistance from their professional certified counselors. Helping consumers come up with an affordable monthly budget is their specialty.
They can give you the benefit of their training and experience at drawing up monthly budgets, plus tips on how to make the bottom line come out in your favor every month.
If you get in the habit of paying bills on time, you will begin to , and youll regain favor with lenders and credit card companies. A few years of good practice and you and your creditors will forget this ever happened.
How Chapter 13 Payment Plans Work
Under Chapter 13, you propose a plan to repay your creditors all or part of what you owe, usually using your future income. If the court approves your plan, you will make payments on your debts for either three or five years. The time and amount of your repayment plan will depend on:
- your income
- the kinds of debt you have
- the value of the property you own, and
- your expenses.
If your current monthly income is less than your states median income for your family size, your plan will usually be for three years. If your income is greater than the state median income, you must usually propose a five-year plan.
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Annuities And Life Insurance
Like the protection of homesteads, the level of protection applied to annuities and life insurance is determined by state law. Some protect the cash surrender values of life insurance policies and the proceeds of annuity contracts from attachment, garnishment, or legal process in favor of creditors. Others protect only the beneficiary’s interest to the extent reasonably necessary for support. There are also states that do not provide any protection.
Will I Lose My Home Or Car If I File Bankruptcy
Under South Dakota law, a person may keep certain property and income if they file for bankruptcy. You may not lose your home or car during bankruptcy if what you have paid for the property is exempt. The amount of money allowed for exemption changes, so make sure you pay attention to what is allowed at the time you file for bankruptcy. If your home or vehicle is worth more than the allowed exemption amount, there may be other options available to keep them. It is best to discuss these options with an attorney.
You also may be able to keep your home or car in a bankruptcy if you own it outright. Your creditors may have a “security interest” in your home or car if you do not own them outright. This means that you gave that creditor a mortgage on the home or put your car or other property up as collateral for the debt. If you don’t make your payments on this debt, the creditor may be able to take and sell the home or car, during or after the bankruptcy case. There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You may be able to make payments on the debt until it is paid in full. Also, you could pay the creditor the amount that the property you want to keep is worth.
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Guiding You Through The Bankruptcy Process
Whether you are filing a Chapter 7 or Chapter 13 bankruptcy, it is not a process you will wish to go through alone. You will need to organize and provide various financial information, and anything discovered as inaccurate or incomplete could result in the delay or dismissal of your case. A dismissal could mean you end up having to pay off your creditors on their terms.
The lawyers at Ribstein & Hogan have handled Chapter 7 and Chapter 13 filings for hundreds of South Dakotans. We understand what steps to take to discharge your debt. Through our services, we guide you towards financial freedom
What Are The Federal Bankruptcy Exemptions
Although most states require bankruptcy filers to use state-specific bankruptcy exemptions, South Dakota law allows you to use either state or federal exemptions. However, you must choose one or the other you cannot use parts of both. If you choose to use federal exemptions when you file for bankruptcy, then you may keep:
- $23,675 of equity in your primary home. This is the homestead exemption you can use it to protect residential real estate as long as you live there. However, this does not extend to investments in rental properties.
- Your vehicle up to a value of $3,775.
- Jewelry valued up to $1,600.
- Household items worth up to a total of $12,625, as long as no single item is worth more than $600. This includes furniture, appliances, clothes, animals, books, etc.
- Tools for your work, including books, valued up to $2,375.
- A total of $12,625 in loan value, dividends or life insurance policy interest.
- All health aids.
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Top Bankruptcy Attorney In Rapid City Sd 57709
A bankruptcy attorney in Rapid City is a legal advisor, who can make help you take advantage of the basic concepts of Chapter 7 and Chapter 13 bankruptcy, as per Federal Government law.
They can advise you and guide you in preparation of all the legal documentations, paper work as per the local courts regulations and procedures. They will share their experience in debt litigation, and clarify any specific critical queries in connection with the process of getting out from under your busines or personal debt by filing a bankruptcy claim under chapter 7 or Chapter 13 bankruptcy.
Will I Have To Go Through The South Dakota Courts To File Bankruptcy
Many individuals are not aware that there is a separate system of courts for bankruptcy proceedings. So, while you may have to attend a court session, it will not be in the general courts used for civil and criminal cases. Typically, the individual will only have to appear around 3 times for the following:
- To submit the bankruptcy petition and financial documents
- The mandatory 341 Meeting of the Creditors and
- The bankruptcy hearing whether their bankruptcy request is granted or denied.
The 341 Meeting of the Creditors is typically scheduled 30 to 35 days following the filing of the bankruptcy. This meeting typically takes place in a meeting room instead of a courtroom. The meeting typically only lasts 5 to 10 minutes.
If there are no other issues, the trustee will approve the discharge of the debts and the individual should receive notice within 45 to 75 days. In some cases, the individual must appear for the judge to confirm the repayment plan, such as in a Chapter 13 bankruptcy, or to resolve any issues that arise.
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Protecting Your Exempt Property
If you file for Chapter 7 bankruptcy, the bankruptcy trustee assigned to your case may sell your property to pay your debts unless the law specifically allows you to keep all or a part of it. The property youre allowed to keep is called your exempt property. For example, exemptions may allow you to keep at least some of the equity in your home, a car, and personal property such as your clothes and household goods.
Bankruptcy exemptions arent automatic. You must figure out what is exempt and list that property on your bankruptcy forms, along with the specific laws that allow you to claim the property as exempt. Exemptions are determined by state law some states have their own exemptions, while others allow you to use the exemptions provided by the federal bankruptcy code.
For more information on South Dakota law, see the Exemptions section of this website.