Bankruptcy is a federal process that applies nationwide, but South Dakota sets its own exemption rules to protect property. The federal bankruptcy exemptions are not available here, though federal nonbankruptcy exemptions can still apply.
Spouses filing jointly can often double certain exemptions unless otherwise limited by law.
| Exemption Type | Amount | Statute | Notes |
|---|---|---|---|
| Homestead | Equity protected if property is under 1 acre in town or 160 acres outside. Proceeds up to $30,000 for 1 year (or $170,000 if widow(er) or 70+ and unmarried). | Various references (e.g., § 43-45, check local code) | Spouses cannot double. Surviving spouse or child can claim if homeowner is deceased. For mobile homes over 240 sq ft (registered 6+ months). |
| Insurance | Life insurance proceeds up to $10,000 (beneficiary is spouse or child); health benefits up to $20,000; annuity proceeds up to $250/mo; life insurance proceeds or cash value up to $20,000, or if contract says it can’t pay creditors. | §§ 43-45-6; 58-12-4; 58-12-8; 58-15-70; 58-37A-18 (various references) | Check if combined limits apply or if amounts are separate. |
| Personal Property | Clothing, food/fuel (1 year), bible & books (to $200), burial plots, health aids, up to $4,000 personal property if head of family (choose from animals, machinery, furniture, etc.) | §§ 43-45-2(2)-(5), 43-29-25 (some references) | The head of a family can claim $4,000 of property or choose from a designated item list. Non-head might have less. |
| Wages | Family wage earner can exempt wages earned in 60 days prior to bankruptcy. | § 15-20-12 | Prisoners in work programs can also protect wages (§ 24-8-10). |
| Wildcard | $5,000 personal property (not real estate), or $7,000 if head of family. | § 43-45-4 | Can protect assets not otherwise exempt. No motor vehicle exemption, so wildcard might be used for that. |
| Pensions | Public employees (§ 3-12-115?), city employees, ERISA-qualified up to allowed federal limit. | Check local references, e.g. § 9-16-47 or similar (some references might differ). | Also federal law covers 401(k), IRAs up to $1,512,350 if tax-exempt. |
| Public Benefits | Crime victims' comp, public assistance, unemployment comp, workers' comp. | §§ 23A-28B-24, 28-7A-18, 61-6-28, 62-4-42 | Typically fully exempt, confirm local details. |
| Tools of Trade | No specific exemption. Use wildcard. | (See wildcard at § 43-45-4) | Could also use personal property if head of a family chooses certain items. |
Chapter 7 vs. Chapter 13: In Chapter 7, a trustee may sell nonexempt assets for creditor repayment. In Chapter 13, you keep your property but pay unsecured creditors at least the nonexempt asset value over 3-5 years.
You must have lived in South Dakota for 2 years (730 days) to use these state exemptions. Otherwise, you might use your prior state’s system. (11 U.S.C. § 522(b)(3)(A)). Federal law also imposes a homestead “cap” if you purchased your home less than 40 months ago, capping your homestead at $189,050 in certain cases.
Important: Exemptions change periodically. Always check if statutes and amounts are current. Verify with a bankruptcy attorney to confirm that these exemptions still apply.