As soon as the petition is filed for bankruptcy in South Dakota, creditors must halt collection efforts. This includes lawsuits, foreclosures, garnishments, and harassment. Within days of the case being filed, the court will send an announcement to all creditors. The announcement will inform them of the filing, in addition to setting a time for the First Meeting of Creditors.
The First Meeting of Creditors is attended by the debtor, his/her attorney, and the Bankruptcy Trustee. Creditors can also attend, but, when filing in Sioux Falls, no creditors are present for most Chapter 7 cases. This meeting takes approximately 10 minutes and it’s intended to verify the material in the original paperwork. In the average Chapter 7 case, clients rarely attend further meetings or hearings.
In a Chapter 7 bankruptcy case, there is a sixty-day period following the First Meeting of Creditors during which creditors can object to your case. The circumstances under which a creditor may object to the discharge of debt are very limited. During this sixty-day period, if a debtor plans to hold a debt (i.e. house, car, or furniture loan), a reaffirmation agreement may or may not be signed by the debtor and the creditor. In which, this will be filed with the Court. Shortly after the sixty-day period expires, the final order of the Bankruptcy Court will be entered, legally discharging debts. A discharge means that the debts are permanently unenforceable and uncollectible. The procedure when filing in South Dakota under Chapter 11, 12, and 13 cases are more involved. Feel free to inquire about it.
