South Dakota Debt Collection Laws: Time Limits, Garnishment and Your Rights
South Dakota debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for South Dakota
- Time limit to sue on a written contract
- 6 years for an action on a contract, obligation or liability, express or implied. South Dakota uses the same period for written and oral contracts. SDCL 15-2-13(1)
- Wage garnishment limit
- The lesser of 20% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum wage (or the South Dakota minimum wage if higher), reduced by $25 per week for each dependent family member living with the debtor. SDCL 21-18-51
- Money protected in a bank account
- No separate bank account exemption. A head of a family may select up to $7,000 of other personal property, including money, as exempt; a debtor who is not a head of a family may select up to $5,000. SDCL 43-45-4
- Answering a debt lawsuit
- Serve your answer within 30 days after the complaint is served on you. Small claims cases follow the deadline stated in the small claims notice. SDCL 15-6-12(a)
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on a contract, obligation or liability, express or implied. South Dakota uses the same period for written and oral contracts. Source: SDCL 15-2-13(1) |
|---|---|
| Time limit for credit cards and open accounts | 6 years, the same as written contracts (contracts express or implied). Source: SDCL 15-2-13(1) |
| Can a payment restart the clock? | An acknowledgment or new promise extends the limitations period only if it is in a writing signed by the debtor. The statute states that this writing rule does not change the effect of a payment of principal or interest. The statute does not itself spell out how long a part payment extends the period. Source: SDCL 15-2-29 |
| How long a judgment lasts | A docketed judgment is a lien on the debtor's real estate (except the homestead) for 10 years. Before the 10 years expire, the creditor may renew it by filing an affidavit, which continues the lien for another 10 years. An action on a South Dakota judgment may be brought within 20 years. 20-year period: https://sdlegislature.gov/api/Statutes/15-2.html?all=true |
If you are sued
| Answering a debt lawsuit | Serve your answer within 30 days after the complaint is served on you. Small claims cases follow the deadline stated in the small claims notice. Source: SDCL 15-6-12(a) |
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Garnishment and what creditors can't take
| Wage garnishment limit | The lesser of 20% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum wage (or the South Dakota minimum wage if higher), reduced by $25 per week for each dependent family member living with the debtor. This is more protective than the federal 25% limit. Source: SDCL 21-18-51 |
|---|---|
| Money protected in a bank account | No separate bank account exemption. A head of a family may select up to $7,000 of other personal property, including money, as exempt; a debtor who is not a head of a family may select up to $5,000. Source: SDCL 43-45-4 |
| Homestead exemption | The homestead (one dwelling and appurtenant buildings, up to 1 acre in a town plat or 160 acres outside) is absolutely exempt with no general dollar cap. If the homestead is sold, up to $100,000 of the proceeds stays exempt for one year. For an owner 70 or older (or the unremarried surviving spouse), the exemption is limited to $170,000. Proceeds and age-70 limit: https://sdlegislature.gov/api/Statutes/43-45.html?all=true |
| Vehicle exemption | No separate motor vehicle exemption; a vehicle can be protected under the general personal property allowance ($7,000 for a head of a family, $5,000 otherwise). Source: SDCL 43-45-4 |
| Bankruptcy exemptions | South Dakota has opted out of the federal bankruptcy exemptions; residents use South Dakota exemptions. Source: SDCL 43-31-30 |
Debt collectors and interest
| Interest rate limits | Judgments bear interest at the Category B rate, which is 10% per year, from the date of judgment. Source: SDCL 54-3-5.1, 54-3-16(2) |
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Where to get help in South Dakota
Debt & Collections FAQ
What is the statute of limitations on debt in South Dakota?
6 years for an action on a contract, obligation or liability, express or implied. South Dakota uses the same period for written and oral contracts.
How long can a creditor sue on a credit card debt in South Dakota?
6 years, the same as written contracts (contracts express or implied).
Does making a payment restart the statute of limitations in South Dakota?
An acknowledgment or new promise extends the limitations period only if it is in a writing signed by the debtor. The statute states that this writing rule does not change the effect of a payment of principal or interest.
How long does a court judgment last in South Dakota?
A docketed judgment is a lien on the debtor's real estate (except the homestead) for 10 years. Before the 10 years expire, the creditor may renew it by filing an affidavit, which continues the lien for another 10 years. An action on a South Dakota judgment may be brought within 20 years.
How much of my wages can be garnished in South Dakota?
The lesser of 20% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum wage (or the South Dakota minimum wage if higher), reduced by $25 per week for each dependent family member living with the debtor. This is more protective than the federal 25% limit.
How much money in a bank account is protected from creditors in South Dakota?
No separate bank account exemption. A head of a family may select up to $7,000 of other personal property, including money, as exempt; a debtor who is not a head of a family may select up to $5,000.
What is the homestead exemption in South Dakota?
The homestead (one dwelling and appurtenant buildings, up to 1 acre in a town plat or 160 acres outside) is absolutely exempt with no general dollar cap. If the homestead is sold, up to $100,000 of the proceeds stays exempt for one year. For an owner 70 or older (or the unremarried surviving spouse), the exemption is limited to $170,000.
Can a creditor take my car in South Dakota?
No separate motor vehicle exemption; a vehicle can be protected under the general personal property allowance ($7,000 for a head of a family, $5,000 otherwise).
What is the maximum legal interest rate in South Dakota?
Judgments bear interest at the Category B rate, which is 10% per year, from the date of judgment.
How do I respond to a debt collection lawsuit in South Dakota?
Serve your answer within 30 days after the complaint is served on you. Small claims cases follow the deadline stated in the small claims notice.
Which bankruptcy exemptions can I use in South Dakota?
South Dakota has opted out of the federal bankruptcy exemptions; residents use South Dakota exemptions.
Debt & Collections in other states
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.