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Montana Debt Collection Laws: Time Limits, Garnishment and Your Rights

Montana debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.

Quick answers for Montana

Time limit to sue on a written contract
6 years for an action on a contract or obligation founded on a written instrument. Mont. Code Ann. § 27-2-202(1)
Wage garnishment limit
Follows the federal limit: no more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage. Mont. Code Ann. § 25-13-614; § 25-13-610(2)
Money protected in a bank account
No general dollar exemption for bank accounts. Exempt funds keep their protection in an account when traceable: earned wages for 45 days after receipt, and proceeds of exempt property for 6 months. Mont. Code Ann. § 25-13-610; § 25-13-608
Answering a debt lawsuit
In district court, serve an answer within 21 days after being served with the summons and complaint. In small claims court, no written answer is filed; Mont. R. Civ. P. 12(a); Mont. Code Ann. §§ 25-35-605, 25-35-607

Last verified: 2026-10-26

Time limits

Time limit to sue on a written contract6 years for an action on a contract or obligation founded on a written instrument.
The written-contract period was previously 8 years; it was changed by 2023 and 2025 amendments.
Source: Mont. Code Ann. § 27-2-202(1)
Time limit for credit cards and open accounts5 years for a contract, account or promise not founded on a written instrument.
Source: Mont. Code Ann. § 27-2-202(2)
Can a payment restart the clock?Yes. A written, signed acknowledgment of the debt or a partial payment (any payment of principal or interest) starts the limitations period running again.
Source: Mont. Code Ann. § 27-2-409
How long a judgment lasts10 years. An action on a judgment must be started within 10 years.
Source: Mont. Code Ann. § 27-2-201(1)-(2)

If you are sued

Answering a debt lawsuitIn district court, serve an answer within 21 days after being served with the summons and complaint. In small claims court, no written answer is filed; appear on the date in the court's order, or file a notice within 10 days after service to move the case to regular justice court.
Court answer forms: https://courts.mt.gov/Forms/CivilForms
Source: Mont. R. Civ. P. 12(a); Mont. Code Ann. §§ 25-35-605, 25-35-607

Garnishment and what creditors can't take

Wage garnishment limitFollows the federal limit: no more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage. Exempt earnings stay exempt for 45 days after the debtor receives them if they can be traced (for example, in a bank account).
Higher limits apply to support orders.
Source: Mont. Code Ann. § 25-13-614; § 25-13-610(2)
Money protected in a bank accountNo general dollar exemption for bank accounts. Exempt funds keep their protection in an account when traceable: earned wages for 45 days after receipt, and proceeds of exempt property for 6 months. Social Security, public assistance, veterans' and disability benefits, and IRAs are exempt.
§ 25-13-608: https://mca.legmt.gov/bills/mca/title_0250/chapter_0130/part_0060/section_0080/0250-0130-0060-0080.html
Source: Mont. Code Ann. § 25-13-610; § 25-13-608
Homestead exemptionThe homestead value limit was $350,000 in 2021 and increases by 4% every calendar year after 2021; the Department of Revenue sets the current figure by administrative rule. Co-owners are limited to their proportional share.
Inflation-adjusted annually.
Source: Mont. Code Ann. § 70-32-104
Vehicle exemptionOne motor vehicle, up to $4,000 in value.
Source: Mont. Code Ann. § 25-13-609(2)
Claiming an exemptionAfter property or money is seized, the sheriff must serve a notice of seizure within 5 days explaining how to claim exemptions. To claim an exemption, file a written request for a hearing with the court that issued the execution, with a statement of the property claimed and why it is exempt and any supporting documents, within 10 days (excluding weekends and holidays) of receiving the notice (or of the date it was mailed). Mail copies the same day to the creditor or its attorney and to the sheriff. The court must hold a hearing within 10 days. Missing the deadline means losing the exemption claim for the seized property.
Source: Mont. Code Ann. §§ 25-13-211, 25-13-212
Bankruptcy exemptionsMontana is an opt-out state: debtors may not use the federal bankruptcy exemptions in 11 U.S.C. 522(d) and must use Montana's exemptions.
Source: Mont. Code Ann. § 31-2-106

Debt collectors and interest

Interest rate limitsJudgments bear simple interest at the bank prime rate (as of January 1 each year) plus 3%. A judgment on a contract that states an interest rate bears the contract rate.
Source: Mont. Code Ann. § 25-9-205

Debt & Collections FAQ

What is the statute of limitations on debt in Montana?
6 years for an action on a contract or obligation founded on a written instrument.
How long can a creditor sue on a credit card debt in Montana?
5 years for a contract, account or promise not founded on a written instrument.
Does making a payment restart the statute of limitations in Montana?
Yes. A written, signed acknowledgment of the debt or a partial payment (any payment of principal or interest) starts the limitations period running again.
How long does a court judgment last in Montana?
10 years. An action on a judgment must be started within 10 years.
How much of my wages can be garnished in Montana?
Follows the federal limit: no more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage. Exempt earnings stay exempt for 45 days after the debtor receives them if they can be traced (for example, in a bank account).
How much money in a bank account is protected from creditors in Montana?
No general dollar exemption for bank accounts. Exempt funds keep their protection in an account when traceable: earned wages for 45 days after receipt, and proceeds of exempt property for 6 months. Social Security, public assistance, veterans' and disability benefits, and IRAs are exempt.
What is the homestead exemption in Montana?
The homestead value limit was $350,000 in 2021 and increases by 4% every calendar year after 2021; the Department of Revenue sets the current figure by administrative rule. Co-owners are limited to their proportional share.
Can a creditor take my car in Montana?
One motor vehicle, up to $4,000 in value.
What is the maximum legal interest rate in Montana?
Judgments bear simple interest at the bank prime rate (as of January 1 each year) plus 3%. A judgment on a contract that states an interest rate bears the contract rate.
How do I respond to a debt collection lawsuit in Montana?
In district court, serve an answer within 21 days after being served with the summons and complaint. In small claims court, no written answer is filed; appear on the date in the court's order, or file a notice within 10 days after service to move the case to regular justice court.
How do I stop a garnishment or claim an exemption in Montana?
After property or money is seized, the sheriff must serve a notice of seizure within 5 days explaining how to claim exemptions. To claim an exemption, file a written request for a hearing with the court that issued the execution, with a statement of the property claimed and why it is exempt and any supporting documents, within 10 days (excluding weekends and holidays) of receiving the notice (or of the date it was mailed). Mail copies the same day to the creditor or its attorney and to the sheriff. The court must hold a hearing within 10 days. Missing the deadline means losing the exemption claim for the seized property.
Which bankruptcy exemptions can I use in Montana?
Montana is an opt-out state: debtors may not use the federal bankruptcy exemptions in 11 U.S.C. 522(d) and must use Montana's exemptions.

Debt & Collections in other states

More Montana law

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.