South Dakota Bankruptcy
In South Dakota individuals are allowed to file for bankruptcy to eliminate debts that they are unable to repay. People must choose between chapter 7 or chapter 13 bankruptcy.
Chapter 7 bankruptcy is a liquidation bankruptcy, while chapter 13 serves as a reorganization bankruptcy and allows an individual to pay off a portion of their debts over a three to five year period.
Chapter 7 is the most common chapter of bankruptcy and allows for a quick and efficient discharge of debts. Most debts (there are some exceptions) can be eliminated with a chapter 7 bankruptcy. Debtors filing chapter 7 bankruptcy will have little or no income as well as little or no assets.
Chapter 13 is a reorganization bankruptcy. When debtors file chapter 13 bankruptcy they are entering into a debt repayment plan with their creditors; your insolvency lawyer can help you draft a repayment plan that will be accepted by your creditors.