Filing Bankruptcy in South Dakota: Means Test, Exemptions and Courts

South Dakota has one federal bankruptcy court district: the U.S. Bankruptcy Court for the District of South Dakota (https://www.sdb.uscourts.gov/).

Median family income for South Dakota: 1 person $69,190; 2 people $89,809; 3 people $100,883; 4 people $130,738; add $11,100 for each additional person beyond 4. These figures apply to bankruptcy cases filed on or after July 15, 2026.

South Dakota has opted out of the federal bankruptcy exemptions. Under state law, South Dakota residents are not entitled to the federal exemptions in 11 U.S.C. § 522(d) and use the exemptions in the South Dakota Constitution and statutes instead.

The homestead is absolutely exempt, with no general dollar limit. It covers one dwelling house (real property or a qualifying mobile home) and buildings appurtenant to it. Area limit: 1 acre within a town plat, or up to 160 acres in total outside a town plat (smaller limits apply to homesteads on certain mineral-claim land). If the homestead is sold, up to one hundred thousand dollars of the sale proceeds is exempt for one year after the owner receives them. For a person 70 or older (or that person's unremarried surviving spouse), the exemption is limited to one hundred seventy thousand dollars.

South Dakota has no separate motor vehicle exemption. A vehicle can be protected only as part of the general personal property allowance: up to seven thousand dollars in aggregate value for the head of a family, or five thousand dollars for a debtor who is not the head of a family.

In addition to the absolute exemptions, a debtor may select any other personal property (goods, chattels, merchandise, money, or other personal property) up to seven thousand dollars in aggregate value if the head of a family, or five thousand dollars if not the head of a family. This allowance applies to personal property only, not real estate.

A person may select and designate a total of one million dollars ($1,000,000), plus the income and distributions from it, in employee benefit plans as exempt from execution, attachment, garnishment, seizure, or other legal process. Covered plans include ERISA plans and plans described in Internal Revenue Code sections 401, 403(a), 403(b), 408 (IRAs), 408A (Roth IRAs), 409, 414, 457, and 501(a). The exemption does not block collection by the State of South Dakota and its political subdivisions, or payments under a qualified domestic relations order.

In a bankruptcy case, a debtor's claimed exemptions may include earned but unpaid earnings, whether or not they have been garnished, but only within the general personal property allowance of SDCL 43-45-4 (seven thousand dollars for a head of a family, five thousand dollars otherwise) and subject to federal preference rules (11 U.S.C. § 547). Outside bankruptcy, garnishment of earnings is governed by SDCL 21-18-51 to 21-18-53.

The U.S. Bankruptcy Court for the District of South Dakota has a "Filing Without an Attorney" page. It says only an individual may file without a lawyer (corporations, LLCs, and partnerships must have an attorney) and that judges, clerk staff, and trustees cannot give legal advice. Every document a self-represented debtor submits, including the petition, must be typewritten (except the signature) and carry the debtor's original handwritten signature and date; typed, stamped, or electronic signatures are not accepted. Married couples filing together must each sign every document and each attend meetings and hearings (a power of attorney or guardianship order must be filed under local rule 9004-1(g) if one spouse acts for the other). Originals are delivered or mailed to the clerk, allowing ample mailing time before deadlines. The page also links to finding an attorney, low-fee or no-fee attorneys, checklists, filing fees, and FAQs.

District of South Dakota (the state's only bankruptcy district): under Bankr. D.S.D. R. 2016-3 (Local Rules and Appendices as amended July 13, 2026), an attorney representing a chapter 13 debtor may use a simplified fee application (Appendix 2O-2) if the attorney's total claim for legal fees, costs, and expenses does not exceed a presumptively reasonable amount of $5,000.00, which is presumed to compensate the attorney for all services in a typical chapter 13 case, including listed minimum services. Notice with a 21-day objection period is required, and the court may issue the order without a hearing if no objections are filed. The simplified process is optional; attorneys may file a standard application instead. (An earlier version of this rule was withdrawn by General Order dated August 15, 2024 and later reinstated in revised form.)