Will the trustee liquidate all of my belongings in Chapter 7 Bankruptcy?

No, the trustee will not liquidate all of your belongings in a Chapter 7 Bankruptcy in South Dakota. This type of bankruptcy is known as a liquidation bankruptcy because it requires that non-exempt assets be sold by the trustee to pay off creditors. However, in South Dakota, debtors are allowed to use exemptions to keep many possessions and assets. Exemptions are determined by state law and the amount you can keep is listed in the South Dakota Code of Civil Procedure. Some of the exempt assets include motor vehicles, home equity, tools of the trade, and household goods. Retirement accounts and insurance policies are also exempt. Additionally, you may be able to protect some of your assets through a reaffirmation agreement, which allows you to keep a specific asset but agreeing to pay the creditor and keep the loan active. Ultimately, the trustee will only liquidate any non-exempt assets that you have in order to pay off the creditors.

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Will the trustee liquidate all of my belongings in Chapter 7 Bankruptcy?

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