A job loss, medical bills, a divorce, or a business that didn’t work out can leave anyone behind on payments. If collection calls, lawsuits, or wage garnishments have taken over your life, Chapter 7 bankruptcy may give you a fresh start, and you may be able to keep more than you think.
Severin Law Firm helps South Dakota residents file Chapter 7 bankruptcy from start to finish. We’re a virtual firm, so you never have to drive to an office. Whether you live in Sioux Falls, Rapid City, Aberdeen, Watertown, or a ranch outside Pierre, we meet by phone or video on your schedule. Attorney Tom Severin is licensed in South Dakota and admitted to the U.S. Bankruptcy Court for the District of South Dakota.
How Chapter 7 Bankruptcy Works in South Dakota
Bankruptcy is federal law, but where you live shapes your case. All South Dakota cases are filed in the U.S. Bankruptcy Court for the District of South Dakota, which holds hearings in Sioux Falls, Rapid City, Pierre, and Aberdeen. Here’s what a typical Chapter 7 case looks like:
- Free consultation. We review your income, debts, and property and tell you honestly whether Chapter 7 fits.
- Credit counseling. You complete a short approved course before filing. It can be done online.
- Filing. We prepare and file your petition and schedules. The automatic stay takes effect immediately, stopping most collection calls, lawsuits, and garnishments.
- Meeting of creditors. About a month after filing, you answer a few questions from the trustee. In South Dakota, these meetings are held by Zoom, so you can attend from home.
- Financial management course. A second short course, also available online.
- Discharge. For most filers, the court issues a discharge a few months after filing, wiping out qualifying debts.
Do You Qualify for Chapter 7?
Most people qualify based on the means test. If your household income is below the South Dakota median for your household size, you generally qualify. If it’s above the median, a second calculation looks at your actual expenses, and many people still pass. The median figures are updated regularly by the U.S. Trustee Program, so we run the numbers using the current tables during your consultation.
You also can’t have received a Chapter 7 discharge in the last eight years. If Chapter 7 isn’t the right fit, we’ll explain your other options.
What Can You Keep? South Dakota Bankruptcy Exemptions
South Dakota requires filers to use its own state exemptions rather than the federal list. Some of the most important protections:
- Your home. South Dakota’s homestead exemption has no dollar cap on value. It’s limited by size instead: up to one acre inside a town or city, or up to 160 acres outside town. This is one of the strongest homestead protections in the country.
- Retirement accounts. Qualifying retirement plans are generally protected.
- Personal property. Clothing, family pictures, a year’s supply of food and fuel, and certain other items are fully protected. A separate “wildcard” amount covers other property, such as equity in a vehicle, and it’s higher for heads of household.
- Benefits and wages. Unemployment, workers’ compensation, public assistance, and certain recent wages needed to support your family are generally protected.
The right exemptions depend on your property and your family. We review everything before filing so there are no surprises.
Recently Moved to or from South Dakota?
Which state’s exemptions you can use depends on where you’ve lived for the past two years (the “730-day rule”). If you moved to South Dakota recently, or moved away, your case may need to use another state’s exemptions. Because we serve both North and South Dakota, we’re used to working through these situations. Read more: Moving to or from South Dakota? How the 730-day rule affects your bankruptcy.
Debts Chapter 7 Can and Can’t Erase
Chapter 7 usually wipes out credit card debt, medical bills, personal loans, past-due utility bills, and many judgments. It generally does not erase child support, alimony, most student loans, recent taxes, or debts from fraud. Secured debts like a car loan or mortgage work differently: you can usually keep the property if you stay current on payments.
Why South Dakota Clients Choose Severin Law Firm
- No travel. Phone and video meetings, e-signatures, and a Zoom creditor meeting mean you can handle your entire case from home.
- Lower overhead, lower fees. As a virtual firm, we pass the savings on to you.
- Free consultation. You’ll know where you stand before you pay anything.
- Direct attorney access. You work with Tom, not a call center.
South Dakota Chapter 7 Bankruptcy FAQs
Can a law firm based in North Dakota handle my South Dakota bankruptcy? Yes. Attorney Tom Severin is licensed in South Dakota and admitted to the U.S. Bankruptcy Court for the District of South Dakota. Because bankruptcy is handled through a federal court with electronic filing and video creditor meetings, where our office is located doesn’t affect your case.
Will I have to go to court? Most Chapter 7 filers never set foot in a courtroom. The only required meeting is the meeting of creditors, which South Dakota holds by Zoom.
Will I lose my house? Usually not. South Dakota’s homestead exemption protects your home’s equity with no dollar cap, as long as the property is within the size limits. You’ll still need to keep up with your mortgage if you want to keep the home.
Can I keep my car? Often, yes. If you have little equity in the vehicle, or your equity fits within available exemptions, you can usually keep it. If you have a car loan, you’ll generally need to stay current.
How long does Chapter 7 take? Most cases are finished within about four months of filing.
Will bankruptcy stop a wage garnishment? Yes. The automatic stay goes into effect the moment your case is filed and stops most garnishments.
Talk to a South Dakota Bankruptcy Attorney Today
You don’t have to figure this out alone. Call 701-433-1411 or request a free consultation online. We’ll review your situation and explain your options, with no pressure and no drive required.
Related: Sioux Falls Bankruptcy Attorney · Rapid City Bankruptcy Attorney · South Dakota Bankruptcy Exemptions · How Long Does Chapter 7 Bankruptcy Take? · Chapter 7 vs. Chapter 13 Bankruptcy
Disclaimer: This page is attorney advertising and general information, not legal advice. Contacting us does not create an attorney-client relationship. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
