The South Dakota bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in South Dakota. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in South Dakota you may also use certain federal exemptions in addition to your South Dakota exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Real property ( or mobile home larger than 240 square feet at its base and registered in state at least 6 months before filing for bankruptcy) to unlimited value; property cannot exceed 1 acre in town or 160 acres elsewhere; sale proceeds to $30,000 (unlimited if you’re over age 70 or an unmarried widow or widower) exempt for 1 year after sale (can’t exempt gold or silver mine, mill or smelter, 43-31-5 Spouse or child of deceased owner may claim homestead exemption May file homestead declaration | 43-31-1, 43-31-2, 43-31-3, 43-31-4
43-31-13 43-31-6 |
Insurance | Annuity contract proceeds to $250 per month Endowment, life insurance policy, proceeds or cash value to $20,000 (husband and wife may not double, In re James, 31 B.R. 67 (D. S.D. 1983) Fraternal benefit society benefits Health benefits to $20,000 Life insurance proceeds, held pursuant to agreement by insurer, if clause prohibits proceeds from being used to pay beneficiary’s creditors Life insurance proceeds to $10,000, if beneficiary is surviving spouse or child | 58-12-6, 58-12-8
58-12-4 58-37-68 58-12-4
58-15-70 43-45-6 |
Miscellaneous | Property of business partnership | 48-4-14 |
Pensions | City employees Public employees | 9-16-47 3-12-115 |
Personal Property |
Books & musical instrument to $200 2 cows, 5 swine, 25 sheep with lambs under 6 months; wool, cloth or yarn of sheep; food for all to last 1 year Farming machinery, utensils, tackle for teams, harrow, 2 plows, sleigh, wagon to $1250 total Furniture, including bedsteads & bedding to $200 Library & tools of professional to $300 Tools of mechanic & stock in trade to $200 2 yokes of oxen, or span of horses or mules 3. Non-head of family may claim $2000 of any personal property |
43-45-2 43-45-4, 43-45-5 43-45-5(1) 43-45-5(3) 43-45-5(3) 43-45-5(2) 43-45-5(5) 43-45-5(4) 43-45-5(3) 43-45-4 |
Public Benefits | Public assistance Unemployment compensation Workers’ compensation | 28-7-16 61-6-28 62-4-42 |
Tools of Trade | See personal property |
|
Wages | Earned wages owed 60 days before filing for bankruptcy, needed for support of family Wages of prisoners in work programs |
15-20-12 24-8-10 |
Wild Card | See personal property |
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For more information on filing bankruptcy in South Dakota explore South Dakota Bankruptcy Law.
