North Dakota Debt Collection Laws: Time Limits, Garnishment and Your Rights
North Dakota 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 North Dakota
- Time limit to sue on a written contract
- 6 years for an action on a contract, obligation or liability, express or implied. North Dakota uses the same period for written and oral contracts. N.D.C.C. 28-01-16(1)
- Wage garnishment limit
- The lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum hourly wage (stricter than the federal 30x floor). N.D.C.C. 32-09.1-03, 32-09.1-04
- Money protected in a bank account
- No separate bank account exemption. A head of a family may select up to $7,500 of other personal property, including money, as exempt; an unmarried person without dependents may select up to $3,750. N.D.C.C. 28-22-03, 28-22-05, 28-22-03.1(8)
- Answering a debt lawsuit
- In a district court civil case you must serve a written Answer on the plaintiff within 21 days after you were served with the summons and complaint, or the plaintiff may get a default judgment. ND Legal Self Help Center, Answering a District Court Civil Action
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on a contract, obligation or liability, express or implied. North Dakota uses the same period for written and oral contracts. Source: N.D.C.C. 28-01-16(1) |
|---|---|
| Time limit for credit cards and open accounts | 6 years, the same as other contracts (express or implied). For a mutual, open and current account with reciprocal demands, the claim accrues from the last item proved in the account on either side. Source: N.D.C.C. 28-01-16(1), 28-01-37 |
| Can a payment restart the clock? | An acknowledgment or new promise extends the limitations period only if it is in a writing signed by the debtor. The statute states that this writing rule does not change the effect of a payment of principal or interest. The statute does not itself spell out how long a part payment extends the period. Source: N.D.C.C. 28-01-36 |
| How long a judgment lasts | Judgments entered on or after August 1, 2023 may be collected for 20 years. Judgments docketed before August 1, 2021 last 10 years and may be renewed once by affidavit filed within 90 days before the 10 years expire, for another 10 years. The courts' self-help guide says it is unclear whether judgments entered between August 1, 2021 and July 31, 2023 can be renewed. Statute text: https://ndlegis.gov/cencode/t28c20.pdf. Section 28-20-21 (renewal for older judgments) is scheduled for repeal effective August 1, 2031. |
If you are sued
| Answering a debt lawsuit | In a district court civil case you must serve a written Answer on the plaintiff within 21 days after you were served with the summons and complaint, or the plaintiff may get a default judgment. The answer can include a counterclaim. Small claims cases have their own answer forms. |
|---|
Garnishment and what creditors can't take
| Wage garnishment limit | The lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum hourly wage (stricter than the federal 30x floor). The garnishable amount 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 within 10 days after receiving the garnishee summons. The creditor must mail or serve a notice at least 10 days before garnishing wages. Source: N.D.C.C. 32-09.1-03, 32-09.1-04 |
|---|---|
| Money protected in a bank account | No separate bank account exemption. A head of a family may select up to $7,500 of other personal property, including money, as exempt; an unmarried person without dependents may select up to $3,750. Exempt benefits such as Social Security keep their protection. |
| Homestead exemption | $150,000 in value over liens and encumbrances, covering the land the owner lives on and the dwelling. A resident who does not claim the homestead may instead claim up to $25,000 in lieu of the homestead exemption. In-lieu exemption: https://ndlegis.gov/cencode/t28c22.pdf |
| Vehicle exemption | One motor vehicle up to $10,000 in value over security interests and liens, or up to $50,000 for a vehicle modified at a cost of at least $1,500 for an owner with a permanent physical disability. Source: N.D.C.C. 28-22-03.1(2) |
| Claiming an exemption | After a writ of execution, the claim for exemptions must be made within 10 days after the notice of levy is served. When non-wage property (such as a bank account) is garnished, the debtor must file a sworn schedule of personal property within 20 days after service of the garnishee summons; the court can hear it on 3 days' notice to the creditor. Property not listed in the schedule is not exempt. The court self-help center does not provide claim-for-exemption forms. Statute text: https://ndlegis.gov/cencode/t28c22.pdf and https://ndlegis.gov/cencode/t32c09-1.pdf |
| Bankruptcy exemptions | North Dakota has opted out of the federal bankruptcy exemptions; residents must use North Dakota exemptions. Source: N.D.C.C. 28-22-17 |
Debt collectors and interest
| State debt collection law | North Dakota's collection agency law (N.D.C.C. ch. 13-05) covers businesses that collect debts owed to another, including debt buyers who take assignments for collection. A creditor collecting its own debts is generally not a 'collection agency' under the definition. The Department of Financial Institutions may act against licensees for harassment, abuse, false or misleading statements or unfair practices. Source: N.D.C.C. 13-05-01.1, 13-05-02 |
|---|---|
| Debt collector licensing | Yes. A collection agency license from the Commissioner of Financial Institutions is required to collect debts in North Dakota, and the law applies whenever the debtor lives in North Dakota. Source: N.D.C.C. 13-05-02 |
| Interest rate limits | Judgment interest is the contract rate (capped by the state usury limit) if the contract sets one; otherwise it is the Wall Street Journal prime rate on the first Monday in December plus 3 points, rounded up to the next half point, simple interest. The State Court Administrator set the 2026 rate at 10.00%. Statute text: https://ndlegis.gov/cencode/t28c20.pdf. The rate is reset every year (2025 was 11.00%). |
Where to get help in North Dakota
- North Dakota Department of Financial Institutions (licenses and regulates collection agencies)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in North Dakota?
6 years for an action on a contract, obligation or liability, express or implied. North Dakota uses the same period for written and oral contracts.
How long can a creditor sue on a credit card debt in North Dakota?
6 years, the same as other contracts (express or implied). For a mutual, open and current account with reciprocal demands, the claim accrues from the last item proved in the account on either side.
Does making a payment restart the statute of limitations in North Dakota?
An acknowledgment or new promise extends the limitations period only if it is in a writing signed by the debtor. The statute states that this writing rule does not change the effect of a payment of principal or interest.
How long does a court judgment last in North Dakota?
Judgments entered on or after August 1, 2023 may be collected for 20 years. Judgments docketed before August 1, 2021 last 10 years and may be renewed once by affidavit filed within 90 days before the 10 years expire, for another 10 years. The courts' self-help guide says it is unclear whether judgments entered between August 1, 2021 and July 31, 2023 can be renewed.
How much of my wages can be garnished in North Dakota?
The lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal minimum hourly wage (stricter than the federal 30x floor). The garnishable amount 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 within 10 days after receiving the garnishee summons. The creditor must mail or serve a notice at least 10 days before garnishing wages.
How much money in a bank account is protected from creditors in North Dakota?
No separate bank account exemption. A head of a family may select up to $7,500 of other personal property, including money, as exempt; an unmarried person without dependents may select up to $3,750. Exempt benefits such as Social Security keep their protection.
What is the homestead exemption in North Dakota?
$150,000 in value over liens and encumbrances, covering the land the owner lives on and the dwelling. A resident who does not claim the homestead may instead claim up to $25,000 in lieu of the homestead exemption.
Can a creditor take my car in North Dakota?
One motor vehicle up to $10,000 in value over security interests and liens, or up to $50,000 for a vehicle modified at a cost of at least $1,500 for an owner with a permanent physical disability.
What debt collection practices are illegal in North Dakota?
North Dakota's collection agency law (N.D.C.C. ch. 13-05) covers businesses that collect debts owed to another, including debt buyers who take assignments for collection. A creditor collecting its own debts is generally not a 'collection agency' under the definition. The Department of Financial Institutions may act against licensees for harassment, abuse, false or misleading statements or unfair practices.
Do debt collectors need a license in North Dakota?
Yes. A collection agency license from the Commissioner of Financial Institutions is required to collect debts in North Dakota, and the law applies whenever the debtor lives in North Dakota.
What is the maximum legal interest rate in North Dakota?
Judgment interest is the contract rate (capped by the state usury limit) if the contract sets one; otherwise it is the Wall Street Journal prime rate on the first Monday in December plus 3 points, rounded up to the next half point, simple interest. The State Court Administrator set the 2026 rate at 10.00%.
How do I respond to a debt collection lawsuit in North Dakota?
In a district court civil case you must serve a written Answer on the plaintiff within 21 days after you were served with the summons and complaint, or the plaintiff may get a default judgment. The answer can include a counterclaim. Small claims cases have their own answer forms.
How do I stop a garnishment or claim an exemption in North Dakota?
After a writ of execution, the claim for exemptions must be made within 10 days after the notice of levy is served. When non-wage property (such as a bank account) is garnished, the debtor must file a sworn schedule of personal property within 20 days after service of the garnishee summons; the court can hear it on 3 days' notice to the creditor. Property not listed in the schedule is not exempt. The court self-help center does not provide claim-for-exemption forms.
Which bankruptcy exemptions can I use in North Dakota?
North Dakota has opted out of the federal bankruptcy exemptions; residents must use North Dakota exemptions.
Debt & Collections in other states
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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.