The South Dakota Answer in One Paragraph
South Dakota filers choose between Chapter 7 (liquidation, 3-4 months, strong discharge rate) and Chapter 13 (3-5 year repayment plan, better for saving a home from foreclosure or for filers above the means test). Three South Dakota-specific inputs drive the choice: (1) the South Dakota means test median of $68,208 for a 1-person household, (2) the South Dakota homestead exemption of Unlimited (1 acre urban, 160 rural), and (3) the local filing mix and outcome data below. Everything else on this page is elaboration on those three factors.
Quick Side-by-Side
Chapter 7 in South Dakota
Chapter 13 in South Dakota
South Dakota Means Test Thresholds (April 2026)
South Dakota's single-person median of $68,208 sits near the national midpoint. Filers close to the line should compute a careful 6-month average -- one high month (bonus, overtime, commission spike) can flip Part 1 from pass to fail.
| Household Size | South Dakota Median Income |
|---|---|
| 1-person household | $68,200 |
| 2-person household | $88,700 |
| 3-person household | $103,700 |
| 4-person household | $120,700 |
| 5-person household | $131,000 |
| 6-person household | $141,200 |
For household sizes above 6, add $11,100 per additional member. Full details at the South Dakota means test calculator. For a general discussion, see our means test overview.
South Dakota Homestead Exemption and the Chapter Choice
South Dakota has an unlimited (or nearly unlimited) homestead exemption under SDCL 43-31-1. That is a powerful Chapter 7 protection: you can keep a home with very substantial equity and still wipe out your unsecured debt. Federal BAPCPA restrictions (11 U.S.C. Section 522(p) -- $214,000 cap for property acquired within 1,215 days) can limit this in a narrow set of cases. Homeowners in South Dakota should almost always model Chapter 7 before considering Chapter 13.
South Dakota is a state-exemptions-only jurisdiction. The federal exemption scheme under 11 U.S.C. Section 522(d) is not available. Review the full exemption list at bankruptcyexemptionsbystate.com/south-dakota before assuming any specific asset is safe.
Homestead amount (South Dakota): Unlimited (1 acre urban, 160 rural). Statute: SDCL 43-31-1.
South Dakota's Chapter 7 vs Chapter 13 Filing Mix
The Federal Judicial Center does not report enough consumer cases from South Dakota to characterize local Chapter 7 vs Chapter 13 filing patterns. National averages (about two-thirds Chapter 7, one-third Chapter 13) are the best available proxy.
Why does filing mix matter? Attorney fee structures often favor Chapter 13 (paid through the plan rather than up-front), which can produce local-market bias toward Chapter 13 that is not driven by individual debtor facts. FJC data lets you see whether South Dakota's mix matches the economics of the typical filer's situation.
Which Chapter Fits Which South Dakota Filer?
- If your income is below the South Dakota median ($68,208, 1-person) and you own little non-exempt property: Chapter 7 is almost certainly the right choice. Fast, cheap, and the highest discharge rate in consumer bankruptcy.
- If you are behind on your mortgage or car loan and want to keep the collateral: Chapter 13 lets you cure arrears over 36 to 60 months while the automatic stay blocks foreclosure and repossession.
- If you have high home equity and South Dakota caps the homestead exemption: run the numbers on Chapter 13 cramdown, lien stripping (for wholly underwater junior liens), and the federal BAPCPA homestead cap before assuming Chapter 7 is safe.
- If you have filed before within the lookback windows: use the 1328(f) discharge screener first -- a prior Chapter 7 discharge bars another Chapter 7 for 8 years, and a prior Chapter 13 discharge bars another Chapter 13 for 2 years.
Rule of thumb for South Dakota: if you qualify for Chapter 7 on the means test AND your home equity is within the Unlimited (1 acre urban, 160 rural) homestead, Chapter 7 is almost always the right choice. Chapter 13 is the right answer when specific facts (arrears, non-exempt equity, prior Chapter 7 within 8 years) rule Chapter 7 out.
Frequently Asked Questions
Is Chapter 7 or Chapter 13 better in South Dakota?
For most South Dakota filers who pass the means test, Chapter 7 is faster, cheaper, and succeeds more often. Chapter 13 is the right choice if you need to save a home from foreclosure, cure arrears, catch up on priority taxes, or cannot qualify for Chapter 7.
What is the Chapter 7 income limit in South Dakota?
There is no hard dollar limit. The means test compares your 6-month average income (annualized) to the South Dakota median for your household size. One person: $68,208. Four person: $120,700. Above-median filers can still qualify by running Part 2 expense deductions.
Can I use federal bankruptcy exemptions in South Dakota?
No. South Dakota opted out of the federal bankruptcy exemption scheme. Filers must use state exemptions exclusively.
How much home equity is protected in South Dakota bankruptcy?
South Dakota's homestead exemption protects Unlimited (1 acre urban, 160 rural) under SDCL 43-31-1. Federal BAPCPA limits (11 U.S.C. Section 522(p)) can cap this at approximately $214,000 for a residence acquired within 1,215 days of filing.
How long does bankruptcy take in South Dakota?
Chapter 7 takes 3 to 4 months from filing to discharge in South Dakota federal bankruptcy court. Chapter 13 takes 3 years (below-median) or 5 years (above-median) of monthly plan payments before discharge.
Can I switch from Chapter 13 to Chapter 7 in South Dakota?
Yes. Under 11 U.S.C. Section 1307(a), a Chapter 13 debtor in South Dakota generally has the right to convert to Chapter 7 at any time, as long as the case was not previously converted from Chapter 7. You must still pass the means test at the time of conversion.
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Last updated: 2026-04-18. Not legal advice. Statutory homestead and median-income figures are reproduced from public sources and may lag statutory amendments -- verify against current state statute before relying.
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