Bankruptcy in Rapid City, SD
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Rapid City, South Dakota? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy in Rapid City, South Dakota
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Rapid City, SD to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
Rapid City bankruptcies are under the jurisdiction of the US Bankruptcy Court, District of South Dakota. Rapid City filings are typically done in the US Courthouse in Pierre.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Rapid City who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
South Dakota Bankruptcy Law states that while many people use Chapter 7 to wipe out their debts, this does not apply to all debt. When you file for Chapter 7 in Rapid City, a trustee manages the liquidation of your assets and uses the proceeds to pay the creditors. However, debts such as alimony or child support cannot be wiped away and must be paid. Additionally, if you owe debt related to criminal activity, this must be paid as well.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.
The majority of Chapter 11 cases are pursued by businesses that desire to restructure existing debt. Specifically, a Rapid City business may be able to pay off creditors without liquidating assets and losing control of the business. The courts will generally allow a restructuring agreement of 3 to 5 years to take place. Keep in mind that the plan cannot be so long that the court finds it unfeasible or unfair to the creditors. The District of South Dakota recently amended its Chapter 11 rules and filed an extensive guide online.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Rapid City, SD after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.
Filing for Chapter 13 in Rapid City can begin with completing a petition. You must also pay filing fees of $313 upon filing. If you reopen a Chapter 13 case, the filing fee is reduced to $235. Other required forms include:
- Creditor Matrix File
- Statement About Your Social Security Numbers
The Bankruptcy Process in Rapid City, South Dakota
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation. It can also help you get back on track.
In Rapid City to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.
Homestead and residential property in Rapid City are exempt under South Dakota Law. In addition, life insurance and health insurance benefits are also exempt. Furthermore, the head of the family can claim personal property exemptions up to $4,000. Other available exemptions include $200 worth of books, the family Bible, as well as food, clothing, and fuel to last the family a year.
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Rapid City, South Dakota Lawyer
Hiring a local bankruptcy lawyer in Rapid City during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case. Especially, which debts that can be discharged or can’t be discharged. An experienced South Dakota attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Rapid City can guide you through the entire bankruptcy process. We can even help you connect with an attorney across South Dakota state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
