Debt Collection Laws in North Dakota
If you're dealing with debt collection in North Dakota, 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.
North Dakota's 2026 debt outlook
Bankruptcy filings in North Dakota ran 740 in the 12 months ending March 2026, versus 552 the year before (+34.1%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in North Dakota sits at 0.7%, trending toward roughly 1% by the end of 2026 (rising fastest). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from North Dakota residents ran 294 so far in 2026, versus 135 over the same window in 2025 (+118%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in North Dakota?
25% of your disposable earnings is the most a creditor can take in North Dakota — the same cap as the federal formula, but with an extra break for family members living with you.
North Dakota's garnishment statute, N.D. Cent. Code § 32-09.1-03, caps wage garnishment at the lesser of (1) 25% of disposable earnings for the week, or (2) the amount by which weekly disposable earnings exceed 40 times the federal minimum hourly wage. That's the standard federal Consumer Credit Protection Act formula — North Dakota hasn't lowered the percentage the way some states (like Illinois or New York) have.
Where North Dakota adds protection: the maximum amount subject to garnishment must be reduced by $20 for each dependent family member residing with the debtor (§ 32-09.1-03(2)). To claim it, the debtor has to give the employer a signed list of dependents within 10 days of the garnishment summons — miss that window and the law presumes no dependents (though the list can still be filed later for future pay periods). These wage caps don't apply to child/spousal support orders, bankruptcy court orders, or state/federal tax debt, and creditors must serve a 10-day pre-garnishment notice (§ 32-09.1-04) or the garnishment is void. Continuing wage liens run up to 270 days (§ 32-09.1-21), and any single garnishee summons lapses after 360 days (§ 32-09.1-20).
- N.D. Cent. Code § 32-09.1-03 — Restriction on garnishment of earnings
- N.D. Cent. Code § 32-09.1-04 — Notice before garnishment of earnings
Can a creditor take money from my bank account in North Dakota?
$7,500 is what a North Dakota head-of-family debtor can shield in money and other personal property from a judgment creditor — there's no exemption written specifically for bank accounts, so this general personal-property exemption is what typically protects a checking or savings balance.
North Dakota doesn't have a bank-account-specific exemption the way some states do. Instead, funds in an account are treated as ordinary personal property and covered by the chapter 28-22 exemptions. The head-of-family exemption under N.D. Cent. Code § 28-22-03 lets the debtor select up to $7,500 in 'goods, chattels, merchandise, money, and other personal property' (not real estate) free from execution. An unmarried person without dependents gets a smaller $3,750 exemption under § 28-22-05.
Separately, § 28-22-03.1(1) lets any state resident choose, in lieu of the homestead exemption, up to $25,000 to apply toward other property — money included — but only if the debtor (or their spouse or head of family) hasn't already claimed the homestead exemption on real estate. In practice, most homeowners will use the homestead exemption for their house and rely on the smaller $7,500 (or $3,750) personal-property exemption to protect bank funds; someone who doesn't own a homestead can instead apply the $25,000 wildcard to cash and other assets. As with all North Dakota exemptions, a claim must be filed within 10 days of a levy notice (§ 28-22-06), and North Dakota residents cannot use the federal bankruptcy exemptions in lieu of these — only state exemptions apply (§ 28-22-17).
- N.D. Cent. Code § 28-22-03 — Additional exemption for head of a family
- N.D. Cent. Code § 28-22-03.1 — Additional exemptions for residents
- N.D. Cent. Code § 28-22-05 — Exemptions of an unmarried person without dependents
Is my home protected from creditors in North Dakota?
$150,000 is the current value North Dakota protects in a debtor's home from most creditors — the equity above that amount can still be reached by a judgment.
N.D. Cent. Code § 47-18-01 exempts the land and dwelling a person resides on, plus its improvements, up to $150,000 in value above any liens or mortgages, and it applies whether the claimant is married or unmarried. The exemption is automatic under North Dakota law — you don't have to file a declaration of homestead to have it, though recording one (§ 47-18-18) puts it on public notice.
The homestead is not bulletproof against every debt: it can still be sold to satisfy mechanics'/construction liens, a mortgage signed by both spouses (or the unmarried owner), purchase-money debt and property taxes on the home itself, and — for other judgment debts — any value above the $150,000 cap after a court-ordered appraisal (§ 47-18-04, § 47-18-06). If a home is worth more than the exemption and can be divided without material injury, the court can carve out just the exempt portion and let execution proceed against the rest (§ 47-18-12).
- N.D. Cent. Code § 47-18-01 — Homestead exemption, area and value
- N.D. Cent. Code § 47-18-04 — When homestead subject to execution
How long can a debt collector sue me in North Dakota?
6 years is the deadline to sue over most debt in North Dakota, whether it's a written contract, an oral agreement, or credit card debt on an open account.
| Debt type | Statute of limitations |
|---|---|
| Written contract | 6 years |
| Oral contract | 6 years |
| Open account / credit card | 6 years |
N.D. Cent. Code § 28-01-16 sets a six-year limitations period for actions on 'a contract, obligation, or liability, express or implied.' Unlike many states, North Dakota doesn't split written contracts from oral ones into different limitations periods — both fall under this same six-year rule, subject to the ten-year period in § 28-01-15 for certain instruments affecting title to real property (like mortgage covenants).
For revolving or open accounts — the typical structure of credit card debt — § 28-01-37 sets the accrual point at the date of the last item (charge or payment) on the account, which is what starts the six-year clock running for most credit card collection suits. A new written, signed promise to pay can restart the limitations period under § 28-01-36; a verbal promise or resumed payment alone is not enough to revive a stale written-contract claim. The statute of limitations is an affirmative defense that must be raised in the debtor's answer (§ 28-01-39) — it isn't automatic.
- N.D. Cent. Code § 28-01-16 — Actions having six-year limitations
- N.D. Cent. Code § 28-01-37 — When claim for relief upon open account accrues
- N.D. Cent. Code § 28-01-36 — New promise must be in writing to extend limitation
Does North Dakota have its own debt collection law beyond the federal FDCPA?
Yes — North Dakota licenses debt collectors through the Department of Financial Institutions under N.D. Cent. Code Chapter 13-05, and an unlicensed collector operating in the state is committing a criminal offense, not just a civil violation.
Chapter 13-05 is primarily a licensing and bonding statute rather than a detailed conduct code like the federal FDCPA. Any person engaging in debt collection from a North Dakota resident must hold a collection agency license from the Commissioner of Financial Institutions (§ 13-05-02), maintain a $50,000 surety bond (§ 13-05-04.1) and a $25,000 minimum net worth (§ 13-05-04.2), and keep six years of collection records (§ 13-05-07). Creditors collecting their own debts, attorneys, banks, and credit unions are exempt from licensing (§ 13-05-02.3).
The specific conduct prohibitions are narrower than federal law: § 13-05-06.3 bars false statements or material omissions in filings with the department, collecting or charging any fee not authorized by the chapter, and failing to truthfully account for money collected on a consumer's behalf. Commingling a customer's collected funds with the agency's own money is also barred (§ 13-05-07(4)). Violating the chapter is a class C felony (§ 13-05-10), and the Commissioner can separately impose civil penalties up to $5,000 per violation, suspend or revoke a license, or remove an offending officer or employee (§ 13-05-06.1) — remedies that are in addition to, not a substitute for, any other legal remedy a consumer may have. Because Chapter 13-05 doesn't create its own private right of action for harassment or deceptive practices the way many states' mini-FDCPAs do, North Dakota consumers dealing with abusive collection tactics generally still need to rely on the federal FDCPA or state consumer fraud law for direct damages claims, while reporting licensing violations to the Department of Financial Institutions.
- N.D. Cent. Code ch. 13-05 — Collection Agencies
- N.D. Cent. Code § 13-05-06.3 — Prohibited acts and practices
- N.D. Cent. Code § 13-05-10 — Penalty
Where can I find free or low-cost legal help in North Dakota?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in North Dakota, 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.