South Dakota debt: six years, and less garnished for each dependent
South Dakota gives creditors six years on nearly any consumer debt. If they win, it protects more of your pay than federal law does, and the amount they can take shrinks for every dependent living with you.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
South Dakota at a glance
- Contracts and open accounts
- 6 years (15-2-13)
- Sale of goods
- 4 years
- Wage garnishment
- Lesser of 20% or above 40 × minimum wage
- Per dependent
- $25 a week less
- Pre-judgment interest
- Contract rate or 10%
- Judgments
- 20 years, renewable
General information about South Dakota law, with sources below. Not legal advice.
Six years in South Dakota
Six years for an open account or breach of contract, written or oral, including credit cards (SDCL 15-2-13). Contracts for the sale of goods have four years.
Garnishment and your dependents
A garnishment can take no more than the lesser of 20% of weekly disposable earnings or the amount above 40 times the federal or state minimum wage, whichever is higher (SDCL 21-18-51). That amount is then reduced by $25 a week for each dependent family member who lives with you. Make sure the dependent reduction is applied: it is not always calculated correctly.
A judgment is enforceable for twenty years and can be renewed.
To see how South Dakota compares with other states, and the ways to stop or reduce a garnishment, read our guide to wage garnishment.
For South Dakota residents with old accounts, the 6-year limit is the key date; our zombie debt guide explains why.
Limits vary a lot between states: by comparison, West Virginia sets 5 years and Florida sets 4 years for similar debts.
National collectors active in South Dakota include Velocity Investments and Walden Pierce Group; our guides list their official dispute addresses.
For the court side of a South Dakota debt, from the summons to a possible judgment, see how to defend a debt collection lawsuit.
Interest and your rights
Pre-judgment interest is awarded at the contract rate or the statutory rate, currently 10% a year. Check any interest a collector adds against your original agreement.
South Dakota has no state consumer collection act of its own; the federal law is the main protection. In practice, the strongest early step in South Dakota is the federal one: dispute in writing before the validation deadline, and the collector has to pause and send proof.
Before paying anything in South Dakota, read whether to pay a collection agency and how to request debt validation.
Questions people ask about debt in South Dakota
What is the statute of limitations on credit card debt in South Dakota?
Six years under SDCL 15-2-13, the same as other contracts and open accounts.
How much of my wages can be garnished in South Dakota?
The lesser of 20% of weekly disposable earnings or the amount above 40 times the higher of the federal or state minimum wage, reduced by $25 a week for each dependent.
Do dependents reduce garnishment in South Dakota?
Yes. The garnishable amount is reduced by $25 a week for each dependent family member living with you.
What interest can be added before judgment in South Dakota?
The contract rate or the statutory rate, currently 10% a year.
How long does a judgment last in South Dakota?
Twenty years, and it can be renewed.