Filing Chapter 7 Bankruptcy in South Dakota (2026)
Reviewed by DocDraft Legal Team · South Dakota · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by South Dakota. South Dakota is an opt-out state: under SDCL 43-45-13 you must use South Dakota's exemptions and cannot choose the federal 522(d) list. South Dakota's homestead is unusual because it is unlimited in dollar value but limited by size, one acre in a town or 160 rural acres under SDCL 43-31-4. This page explains the homestead, the general personal-property exemption that covers a vehicle, the means-test median income, and the single federal bankruptcy court where South Dakotans file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does South Dakota use state or federal bankruptcy exemptions?
South Dakota is an opt-out state. Under SDCL 43-45-13, titled certain federal bankruptcy exemptions not available, a debtor filing in South Dakota must use South Dakota exemptions and cannot elect the federal 11 U.S.C. 522(d) list. You protect your property using the state homestead and personal-property exemptions only.
Can I keep my house if I file Chapter 7 in South Dakota?
Often yes. South Dakota's homestead exemption protects an unlimited dollar amount of equity, but the land is capped by size: one acre within a town or 160 rural acres under SDCL 43-31-4. If your home fits within that acreage limit, Chapter 7 generally lets you keep it regardless of how much equity you hold.
Can I keep my car if I file Chapter 7 in South Dakota?
Sometimes. South Dakota has no separate motor-vehicle exemption. A car is protected only through the general personal-property exemption under SDCL 43-45-4, which covers up to $7,000 of any personal property for the head of a family, or $5,000 for a single filer. If your car equity fits within that amount alongside other goods, the vehicle is protected.
What is the income limit to file Chapter 7 in South Dakota?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for South Dakota are $69,190 for one earner, $89,809 for two, $100,883 for three, and $130,738 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
South Dakota's Opt-Out Rule, the Unlimited-Value Homestead, and the District Court
South Dakota is a bankruptcy opt-out state. Under SDCL 43-45-13, a debtor filing in South Dakota must use South Dakota exemptions and cannot choose the federal 11 U.S.C. 522(d) set. What makes South Dakota distinctive is its homestead: SDCL 43-31-1 and 43-31-4 protect an unlimited dollar amount of home equity, but cap the land at one acre if the home sits within a town plat or 160 acres if it is rural. This means a modest-equity homeowner and a high-equity homeowner are equally protected so long as the acreage fits. South Dakota has no vehicle-specific exemption; a car is covered only by the general personal-property exemption under SDCL 43-45-4, which shields up to $7,000 of any personal property for the head of a family, or $5,000 for a single filer. Wages are protected under SDCL 15-20-12 and the garnishment limits in SDCL 21-18-51, and retirement savings are exempt up to $1,000,000 under SDCL 43-45-16 and 43-45-17. Everyone in the state files in the same court: the U.S. Bankruptcy Court for the District of South Dakota, a single federal district covering the whole state.
Relevant Laws
South Dakota Homestead Exemption (SDCL 43-31-1 and 43-31-4)
Establishes South Dakota's homestead, which protects an unlimited dollar amount of home equity but limits the land to one acre within a town plat or 160 acres if rural. This is the exemption that lets many South Dakota homeowners keep their house in Chapter 7 regardless of equity.
South Dakota Opt-Out from Federal Exemptions (SDCL 43-45-13)
Titled certain federal bankruptcy exemptions not available, this statute is South Dakota's opt-out from the federal 522(d) list under 11 U.S.C. 522(b)(2). A debtor filing in South Dakota must use the state exemptions and cannot elect the federal set.
South Dakota Personal Property Exemption (SDCL 43-45-4)
The general personal-property exemption covering up to $7,000 of any personal property for the head of a family, or $5,000 for a single filer. Because South Dakota has no separate car exemption, this is the provision that must cover a debtor's vehicle.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which South Dakota has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
South Dakota Chapter 7 Exemption Table
Homestead
SDCL 43-31-1 and 43-31-4: unlimited in dollar value, but the land is capped at one acre within a town plat or 160 acres if rural. Equity is not the limit; acreage is. A dwelling house and its outbuildings within those limits are protected.
Motor vehicle
South Dakota has no vehicle-specific exemption. A car is protected only by the general personal-property exemption under SDCL 43-45-4. Equity that does not fit within that personal-property amount may be reachable by the trustee.
Wildcard / personal property
SDCL 43-45-4 exempts up to $7,000 of any personal property for the head of a family, or $5,000 for a single filer, functioning as South Dakota's general and wildcard allowance.
Absolute exemptions
Beyond the dollar-limited personal property, SDCL 43-45-2 protects certain items absolutely, such as family Bible and pictures, church pew, burial plots, clothing, and provisions and fuel to sustain the family. These are exempt without counting against the general personal-property dollar cap.
Wages
Wage garnishment is limited under SDCL 21-18-51 and SDCL 15-20-12, which restrict the portion of earnings a creditor can reach. Earnings within those statutory limits are protected from most creditors during and after a Chapter 7 case.
Retirement
SDCL 43-45-16 and 43-45-17 exempt retirement and pension savings up to $1,000,000. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law, so most employer plans remain protected regardless of the state cap.
Suggested Compliance Checklist
Confirm the current South Dakota means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee South Dakota median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $69,190 for one, $89,809 for two, $100,883 for three, and $130,738 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of South Dakota and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Confirm your homestead acreage and value your assets
Before preparing your schedules days after startingVerify your home fits the homestead limit under SDCL 43-31-4 (one town acre or 160 rural acres), then value your vehicle and personal property against the general SDCL 43-45-4 exemption, since South Dakota has no separate car exemption. Accurate values determine what you keep.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of South Dakota, the single district covering the entire state. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current South Dakota means-test median income | Check your household size against the U.S. Trustee South Dakota median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $69,190 for one, $89,809 for two, $100,883 for three, and $130,738 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of South Dakota and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Confirm your homestead acreage and value your assets | Verify your home fits the homestead limit under SDCL 43-31-4 (one town acre or 160 rural acres), then value your vehicle and personal property against the general SDCL 43-45-4 exemption, since South Dakota has no separate car exemption. Accurate values determine what you keep. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of South Dakota, the single district covering the entire state. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
South Dakota's homestead exemption has no dollar cap on equity. Under SDCL 43-31-1 and 43-31-4, it protects your home regardless of value, but limits the land to one acre if the home sits within a town plat or 160 acres if it is rural. So long as your property fits that acreage limit, all of your home equity is protected in Chapter 7.
No. South Dakota has no exemption dedicated to a car. A vehicle is protected only through the general personal-property exemption in SDCL 43-45-4, which covers a limited dollar amount of any personal property. If your car equity, combined with other goods you claim, stays within that limit, you can keep the vehicle.
You file in the U.S. Bankruptcy Court for the District of South Dakota, the single federal bankruptcy district that covers the entire state. You file where you have lived for most of the prior 180 days. There is no separate northern or southern division to choose between, unlike states split into multiple districts.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Largely yes. South Dakota limits wage garnishment under SDCL 21-18-51 and 15-20-12, so earnings within those limits are shielded from most creditors. Retirement savings are exempt up to $1,000,000 under SDCL 43-45-16 and 43-45-17, and ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
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