What are exemptions?

Exemptions in South Dakota bankruptcy law refer to the assets that debtors are allowed to keep after filing for Chapter 7 bankruptcy. Exemptions are used to protect certain assets from being sold or taken to help pay off debt, allowing debtors to keep some property and other assets in order to start fresh after they complete a Chapter 7 bankruptcy. Exemptions can consist of real estate, personal property, vehicles, pensions, disability insurance, public assistance, and certain sums of money, depending on the debtor’s situation. In South Dakota, these exemptions are outlined in South Dakota Codified Law 55-15-12 and South Dakota Codified Law 43-45-12. In addition to the exemptions provided by the state, debtors may be able to choose between the federal exemptions or the state exemptions when filing for Chapter 7 bankruptcy. Debtors should always consult a qualified bankruptcy attorney to make sure they’re getting the most out of their exemptions and filing the right bankruptcy petition. The main purpose of exemptions is to provide debtors with a fresh start by allowing them to keep some of their assets after filing. Exemptions can also help protect debtors from creditors who might otherwise have them pay a large portion of their debt with assets they don’t have the means to replace.

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