United States Bankruptcy Court for the District of South Dakota
01/14/2026 | Press release | Archived content
In re Edward Clark Ainsworth and Stephanie Jo Ainsworth
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In re Edward Clark Ainsworth and Stephanie Jo Ainsworth
Bankr. No.:
25-50051
Chapter:
7
Date of Decision:
January 14, 2026
Issue:
Whether the debtors were entitled to claim exempt under S.D.C.L. §43-45-4 wages garnished in the 90 days before their bankruptcy petition was filed?
Ruling:
Ruling: Yes. S.D.C.L. §43-45-14 was amended in 2007 to allow debtors to claim exempt earned but unpaid garnished wages if they fit within the exemption limits of S.D.C.L. §43-45-4 and are recoverable for the bankruptcy estate as a preferential transfer under 11 U.S.C. §547.
Full Bankruptcy Court Decision:
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