Debt Collection Laws in Montana
If you're dealing with debt collection in Montana, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
Montana's 2026 debt outlook
Bankruptcy filings in Montana ran 896 in the 12 months ending March 2026, versus 771 the year before (+16.2%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Montana sits at 0.7%, trending toward roughly 0.9% by the end of 2026 (elevated and rising). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Montana residents ran 154 so far in 2026, versus 77 over the same window in 2025 (+100%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Montana?
Montana follows the federal formula exactly: a creditor can take the lesser of 25% of your disposable weekly earnings, or the amount by which those earnings exceed 30 times the federal minimum wage — Montana hasn't written its own, more protective cap into state law for ordinary consumer debt.
Mont. Code Ann. § 25-13-614 copies the federal Consumer Credit Protection Act formula, defining earnings, disposable earnings, and garnishment by reference to 15 U.S.C. § 1672. The 30-times-minimum-wage floor is calculated against the $7.25 federal minimum wage, not Montana's higher state minimum wage, so whichever of the two caps (the 25% ceiling or the 30x-minimum-wage floor) leaves the debtor with more money is the one that controls.
Child and spousal support orders run on a separate, more aggressive scale: up to 50% of disposable earnings if the debtor supports another spouse or dependent child, rising to 60% if not, and climbing further to 55% or 65% respectively once the support arrears are more than 12 weeks past due. Those support-order percentages, along with bankruptcy-court and tax-levy garnishments, are carved out from the ordinary 25%/30x-minimum-wage cap entirely.
Can a creditor take money from my bank account in Montana?
Montana doesn't have a dedicated dollar-figure bank-account exemption or a general wildcard the way many states do — once income lands in a checking or savings account, a creditor can generally levy the balance unless it can be traced back to a specific exempt source.
Mont. Code Ann. § 25-13-608 exempts specific categories without a dollar cap — Social Security, veterans' benefits, disability and illness benefits, most public retirement-system benefits, and IRA or Roth IRA contributions and earnings among them — but several of those same categories (veterans' benefits, Social Security, disability benefits, and IRA assets) lose their exempt status when the judgment is for child support or spousal maintenance.
Section 25-13-610 lets a debtor trace exempt money after it's deposited or converted — using first-in-first-out, last-in-first-out, or any other reasonable accounting method — for up to 6 months after the funds are received, sold, or the debtor is indemnified for lost or destroyed exempt property. Outside of that tracing window, ordinary savings that aren't traceable to one of the listed exempt sources are fair game, since Montana has no standalone 'X dollars of your bank account is always safe' rule.
Is my home protected from creditors in Montana?
Montana protects roughly $425,800 of home equity as of 2026, but — unlike states where the protection is automatic just by living there — a homeowner has to actually file a declaration of homestead with the county clerk and recorder before the exemption attaches.
Mont. Code Ann. § 70-32-104 set the base limit at $350,000 in 2021 and requires the Department of Revenue to increase it by 4% every calendar year after that, which puts the 2026 figure at roughly $425,800 (up from about $409,450 in 2025). Section 70-32-201 exempts the homestead from execution or forced sale 'except as in this chapter provided,' but that protection only exists once a valid declaration recorded under § 70-32-105 is on file — Montana does not extend the exemption automatically to a home simply because someone occupies it as a primary residence, which trips up homeowners who assume they're covered by default.
The exemption doesn't defeat a mortgage, a mechanic's lien, a tax lien, or a lien that predates the homestead declaration, and only one exemption is allowed per homestead regardless of how many qualifying family members hold title. Assessed value on the most recent county assessment roll is treated as prima facie evidence of the property's value if a creditor disputes whether the equity exceeds the statutory limit.
How long can a debt collector sue me in Montana?
Montana gives a creditor 6 years to sue on a written contract and 5 years on an oral contract, account, or open-ended credit arrangement — and that written-contract window just got shorter: it dropped from 8 years to 6 for cases governed by the 2025 amendment.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written contract | 6 years |
| Open account / oral contract | 5 years |
Mont. Code Ann. § 27-2-202(1) sets the period for an action 'founded on an instrument in writing' at 6 years, down from 8 years under Senate Bill 143 (2025 Mont. Laws ch. 174), which applies to actions filed on or after October 1, 2025. A credit-card agreement or signed promissory note falls here; a debt already time-barred before that date isn't revived by the change.
Section 27-2-202(2) covers a contract, account, or promise 'not founded on an instrument in writing' — where most revolving credit-card balances, store cards, and running store or medical accounts actually land — at 5 years, and § 27-2-202(3) sets a 3-year period for other non-written obligations or liabilities. Whether a particular credit-card debt gets the 6-year or 5-year clock depends on whether the account was actually reduced to a signed written agreement, not just on the type of debt.
Does Montana have its own debt collection law beyond the federal FDCPA?
Montana doesn't have a stand-alone debt-collection statute or a collection-agency licensing law the way many states do — instead, abusive or deceptive collection conduct gets folded into the Montana Consumer Protection Act's broad ban on unfair or deceptive trade practices, which applies to debt collectors along with every other business.
Mont. Code Ann. § 30-14-103 makes 'unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce' unlawful, and Montana courts and the Department of Justice's Office of Consumer Protection have applied that broad language to collector misconduct — harassing calls, misrepresentations about a debt, and similar tactics — without needing a debt-specific statute. Montana does license collectors of consumer loans through the Division of Banking and Financial Institutions, but there's no general licensing requirement for third-party debt collectors of ordinary consumer debt the way some states impose.
Section 30-14-133 gives a consumer who suffers an ascertainable loss the right to recover actual damages or $500, whichever is greater, plus up to treble damages (capped once actual damages reach $100,000) and reasonable attorney's fees (capped at $250/hour, unavailable once actual damages hit $100,000). A person representing themselves without a lawyer can still be awarded fees at the court's discretion, and claims can be filed in the district court — or justice's court — where the collector resides, does business, or has its principal place of business.
Where can I find free or low-cost legal help in Montana?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Montana, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.