Bankruptcy Exemptions in North Dakota

North Dakota has opted out of the federal bankruptcy exemptions. Residents are not entitled to the federal exemptions in 11 U.S.C. 522(d) and are limited to the exemptions allowed by North Dakota law.

Up to $150,000 in value over and above liens and encumbrances, covering the land the filer lives on, the house on that land, and its improvements. There is no acreage limit, but the homestead cannot include separate lots or tracts unless they are contiguous. A mobile home or house trailer used as a residence can be claimed instead, subject to the same value limit. A resident who does not claim the homestead may instead claim an exemption of up to $25,000 in lieu of the homestead.

One motor vehicle up to $10,000 in value over security interests and liens, or up to $50,000 for a vehicle that has been modified at a cost of at least $1,500 to accommodate an owner with a permanent physical disability.

North Dakota lets a head of a family choose up to $7,500 of other personal property of any kind, including money, as exempt; an unmarried person with no dependents may choose up to $3,750. A resident who does not claim the homestead may also claim up to $25,000 in lieu of the homestead exemption.

Retirement funds in accounts that are tax-exempt under Internal Revenue Code sections 401, 403, 408, 408A, 414, 457 or 501(a) and have been in effect for at least one year are exempt up to $200,000 per account and $400,000 total for all accounts; the dollar limit does not apply to the extent the funds are reasonably necessary to support the filer and dependents. Payments under a pension, profit-sharing, annuity or similar plan on account of illness, disability, death, age or length of service are exempt to the extent reasonably necessary for support (with an exception for certain non-qualified insider plans). Pensions and benefits from North Dakota state, state-agency, political-subdivision and firefighter relief retirement systems are fully exempt. Spousal support, child support and qualified domestic relations orders are exceptions.

North Dakota's exemption chapter protects wages only to the extent of the garnishment limit: no more than the lesser of 25% of weekly disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the federal minimum hourly wage, can be taken. The amount that can be taken is reduced by $20 per week for each dependent family member living with the debtor if the debtor gives the employer a signed list of dependents.