South Dakota Chapter 13 Bankruptcy Lawyers

Chapter 13 bankruptcy, known as “reorganization bankruptcy” is a very useful tool for individuals who are facing financial hardship and meet certain criteria. Over the years, the legal team here at 605 Bankruptcy has helped countless clients through the Chapter 13 bankruptcy process, and we’d be honored to help you, too. Contact our skilled South Dakota Chapter 13 bankruptcy lawyers to learn more about how we can assist you and protect your interests.

Who Can File for Chapter 13 Bankruptcy in South Dakota?

To file for Chapter 13 bankruptcy in South Dakota, certain criteria must be met to ensure eligibility. This type of bankruptcy is specifically designed for individuals with a steady income who wish to reorganize their debts into a manageable repayment plan. You may qualify if:

• You are an individual or sole proprietor (business entities like corporations or LLCs are not eligible for Chapter 13).
• You have a reliable source of income that allows you to adhere to a court-approved repayment plan over a period of three to five years.
• Your debts fall within allowable limits, with unsecured debts (like credit cards and medical bills) not exceeding $2,750,000 and secured debts (like mortgages or car loans) below $1,420,000 as of the most recent federal guidelines.
• You have filed taxes for the previous four years, as proof of compliance is required during the bankruptcy process.

Our experienced team at 605 Bankruptcy can evaluate your unique financial situation and determine whether Chapter 13 bankruptcy is the right option for you.

What Debts Can I Discharge in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy offers relief by allowing you to restructure and, in some cases, discharge certain debts. While not all debts qualify, the following types often can be included:

• Credit card debt, including unpaid balances and fees.
• Medical bills and associated costs.
• Unsecured personal loans.
• Utility bills that are past due.
• Certain tax obligations, if they meet specific criteria (e.g., older income tax debts).
• Lease agreements or contracts that are canceled as part of the bankruptcy.

Our knowledgeable bankruptcy lawyers will help you identify the debts eligible for discharge and craft a repayment plan that fits your circumstances.

What Can’t I Discharge in Chapter 13 Bankruptcy?

While Chapter 13 provides significant relief, certain debts cannot be discharged under this type of bankruptcy. These include:

• Child support and alimony obligations.
• Most student loans, unless you can demonstrate undue hardship, which is a high standard to meet.
• Recent tax debts and any tax liens.
• Court-ordered fines or restitution, including penalties related to criminal activity.
• Debts arising from fraud or malicious actions.

What Happens After the Process is Complete?

Once you successfully complete your Chapter 13 repayment plan, the court will issue a discharge order for the qualifying debts outlined in your case. This means:

• You’ll no longer be legally obligated to repay those discharged debts.
• You’ll have retained ownership of your assets, as Chapter 13 allows you to avoid liquidation.
• Your credit report will reflect the bankruptcy, but many individuals find they can begin rebuilding their credit shortly after their case is closed.
• You’ll have a fresh start, free from overwhelming debt, and can begin planning for a more stable financial future.

At 605 Bankruptcy, we’ll be with you every step of the way, even after your case is resolved, to provide guidance and ensure your financial recovery stays on track.

Contact Our South Dakota Bankruptcy Lawyers Today

Ultimately, Chapter 13 bankruptcy is a very useful way to reorganize your debts and pave the way for a more comfortable financial future. That said, you should never go through this process on your own. Contact the dedicated Chapter 13 bankruptcy lawyers here at 605 Bankruptcy to schedule your free initial consultation today.