If you are drowning in debt and see no way to get out you may have to consider filing for bankruptcy. Chapter 7 bankruptcy allows a discharge of certain types of debt and is a good choice for people without any real assets. Chapter 13 allows debtors to formulate an acceptable plan for repayment within 3-5 years. This type of bankruptcy allows you to keep your home and car instead of selling them to pay creditors.

The recently updated bankruptcy law makes it more difficult for consumers to easily discharge debt. You now have to attend credit counseling and pay higher fees. A bankruptcy attorney is necessary unless you have an extremely simple case. Your attorney can review your circumstances and help you decide which type of bankruptcy is for you. They can deal with your creditors, end wage garnishment, file all necessary paperwork and represent you in court. The types of debts that are eligible for discharge may vary in South Dakota . You cannot discharge student loans unless they were not insured or taken under a government guarantee program. There are exceptions for cases of extreme hardship but they are hard to come by. The bankruptcy court in South Dakota will also exclude back child support, some taxes or alimony. You will not get out of paying your mortgage unless the property is sold. You can discharge any additional debt as a result of the sale of your home. If a creditor can prove that you gave false information to obtain a loan the court can decide you are still responsible. After you have appeared in court, gained approval from the judge and taken the required steps like credit counseling your bankruptcy will be discharged. This notifies your creditors that the debt is forgiven and they cannot attempt to collect it from you in any way. Your creditors can decide to enter into an adversary proceeding. This allows the creditor to attempt to collect all or a portion of the debt when and if the debtor’s assets are liquidated. When you declare bankruptcy you can be denied if it is proven that you have hidden assets or destroyed records with the intent of defrauding your creditors. Your attorney will make you aware of all that is expected of you. It is important that all the requirements are met in a timely manner so your bankruptcy can forward without needless delays or problems. If you decide to declare bankruptcy just remember that a fresh start is possible and you will have good credit before you know it.

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