North Dakota Bankruptcy Exemptions: What You Get to Keep

If you file bankruptcy in North Dakota, you cannot pick the federal bankruptcy exemption list. North Dakota is an "opt-out" state under North Dakota Century Code (N.D.C.C.) section 28-22-17, which means you must use North Dakota's own exemptions (combined with the separate federal non-bankruptcy exemptions, such as those protecting Social Security and certain retirement plans). The headline protections are generous on housing but modest on personal property: North Dakota's homestead exemption shields up to $100,000 of equity in your home under N.D.C.C. section 47-18-01, while everyday items like your car and cash are protected through a layered set of "absolute" exemptions and dollar-capped wildcard allowances in N.D.C.C. Chapter 28-22.

You Must Use North Dakota's Exemptions, Not the Federal Set

Federal bankruptcy law (11 U.S.C. section 522) offers a national menu of exemptions, but it also lets each state "opt out" and force its residents to use state-law exemptions instead. North Dakota has opted out. So a North Dakota debtor protecting property in Chapter 7 or Chapter 13 looks to the North Dakota Century Code, not to the federal section 522(d) list that residents of states like Texas or Pennsylvania may choose from.

There is one important wrinkle: opting out does not strip away the federal non-bankruptcy exemptions. Protections written into other federal statutes, like the anti-attachment rules for Social Security benefits, veterans' benefits, and many federal pensions, still apply on top of North Dakota's list. Residency also matters. Federal law (11 U.S.C. section 522(b)(3)) generally requires you to have lived in North Dakota for at least 730 days before filing to use its exemptions; if you moved recently, the law looks back to where you lived during the earlier period, which can change which state's exemptions you use.

The Homestead Exemption: Up to $100,000

North Dakota's homestead exemption is its strongest protection. Under N.D.C.C. section 47-18-01, a homestead consisting of the home and the land it sits on is exempt from forced sale up to $100,000 in value, over and above any liens or encumbrances such as a mortgage. The exemption is per household, not per spouse, so a married couple does not double it.

The homestead must actually be your residence. The protection covers the dwelling you live in, whether that is a house, and in many cases a mobile home or the proceeds of a sale for a limited time. It does not defeat a mortgage, a properly recorded mechanic's lien, a construction lien, or unpaid property taxes; those debts can still be enforced against the home because the exemption protects equity from general creditors, not from debts secured by the property itself.

The Vehicle and "In Lieu of Homestead" Exemptions

North Dakota's motor-vehicle protection is comparatively small. The Century Code exempts a limited dollar amount of equity in one motor vehicle, with a substantially larger allowance when the vehicle has been modified to accommodate a disability. Because these specific dollar figures sit in N.D.C.C. section 28-22-03.1 and have been adjusted over time, confirm the current motor-vehicle cap directly in the statute before you rely on a number.

If you do not own a home, or have little equity in it, North Dakota lets you redirect protection elsewhere. Under N.D.C.C. section 28-22-03, a debtor who does not claim a homestead may instead exempt a set amount of value, traditionally $7,500, in other personal property of the debtor's choosing. This "in lieu of homestead" allowance functions much like a wildcard for renters and others who cannot use the housing exemption.

Absolute Exemptions and the Wildcard

North Dakota law divides personal-property protection into two main buckets. The first, in N.D.C.C. section 28-22-02, lists "absolute" exemptions that every resident keeps regardless of dollar limits or homestead status. These typically include the family's wearing apparel; family pictures; a year's supply of provisions and fuel for the family; certain books and instruments; a pew or seat in a house of worship; and burial plots. These items are protected outright.

The second bucket is the additional personal-property exemption in N.D.C.C. section 28-22-03.1. It generally lets a head of a family claim a larger amount, historically $5,000, in any personal property, while a single person who is not the head of a family may claim a smaller amount, historically $2,500. This is North Dakota's true "wildcard": you can apply it to a bank account, household goods beyond the absolute list, tools, or equity in a vehicle. The statute also addresses retirement accounts and the cash value of life insurance, subject to their own caps. Because these dollar amounts are statutory and periodically revised, verify the current figures in section 28-22-03.1 rather than assuming a number is still accurate.

Wages and the Federal Comparison

Even outside bankruptcy, North Dakota limits how much of your paycheck a creditor can take. Federal law under the Consumer Credit Protection Act (15 U.S.C. section 1673) caps most wage garnishment at 25% of disposable earnings, or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. North Dakota's garnishment rules in N.D.C.C. Chapter 32-09.1 follow this framework and add protections for debtors who support dependents, which can shrink the garnishable amount further. In bankruptcy, future wages you earn after filing a Chapter 7 case generally are not part of the estate at all.

How to Claim and Verify Your Exemptions

Exemptions are not automatic. In a bankruptcy case you list each item on Schedule C and cite the specific North Dakota statute that protects it. If the bankruptcy trustee or a creditor disagrees, they can file an objection, and the bankruptcy court decides whether the property is exempt. Choosing the wrong statute, or overstating value, can cost you the protection, so accuracy matters.

Before you rely on any figure here, confirm it against the current law, because the Legislature updates dollar caps from time to time. The authoritative source is the North Dakota Century Code itself, Chapters 28-22 and 47-18, published by the North Dakota Legislative Branch. For consumer questions and complaints about debt collectors, you can also contact the North Dakota Attorney General's Consumer Protection and Antitrust Division, which enforces the state's consumer-protection laws and provides guidance to residents. For complex or high-equity cases, a North Dakota bankruptcy attorney can confirm how the current caps apply to your specific property.

Official North Dakota Sources

This page is based on North Dakota law. Limits and deadlines change — verify the current details directly with the official North Dakota sources below. This is general legal information, not legal advice.

• North Dakota Attorney General - Consumer Protection Division & Resources — official North Dakota agency.
• File a Consumer Complaint - North Dakota Attorney General
• North Dakota Century Code Chapter 51-15 - Unlawful Sales or Advertising Practices (Consumer Fraud)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of North Dakota’s own rules.