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Bankruptcy

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Commencement of a bankruptcy case creates an estate. The estate technically becomes the temporary legal owner of all the debtor's property. It consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor's creditors are paid from nonexempt property of the estate.

In South Dakota, as in other states, the commencement of a bankruptcy case results in the creation of a bankruptcy estate, which is a central concept in bankruptcy proceedings. This estate is comprised of virtually all of the debtor's assets and interests in property at the time the bankruptcy case is filed. The estate is managed by a bankruptcy trustee, who is appointed to oversee the case. The trustee has the authority to liquidate nonexempt assets of the estate to pay off creditors. South Dakota has specific exemptions that allow debtors to keep certain property out of the estate, which are based on state law and can differ from federal bankruptcy exemptions. These exemptions might include equity in a home, personal property, tools of the trade, and certain retirement accounts, among others. The exact nature of these exemptions can be complex and may require consultation with an attorney to navigate effectively.

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Bankruptcy

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South-Dakota State Code

South-Dakota State Code

Bankruptcy

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