North Dakota Bankruptcy Laws and Asset Exemptions

Description: North Dakota bankruptcy laws are designed to help give individuals the debt relief they need. Knowing the laws and exemptions makes the process more predictable.

North Dakota bankruptcy laws can provide individuals with powerful protections against creditors and release them from a great deal of debt that is interfering with their quality of life. This can be achieved by filing Chapter 7 or Chapter 13 bankruptcy. One of the primary differences between the two is that Chapter 7 may require the liquidation of some assets, while a Chapter 13 repayment plan can preserve a person’s assets as long as they adhere to the plan.

Asset Liquidation

Chapter 7 asset liquidation is a very important aspect of the North Dakota bankruptcy laws. There are some individuals that surrender a lot of property, some that surrender just a few items, and others that lose nothing because they simply have no assets of significant value.

Nonetheless, what a person can keep or doesn’t keep depends upon the state’s exemptions. These exemptions state that certain types of property are exempt to certain dollar amounts and that is based upon the present worth of the items and not the purchase prices due to depreciation.

Here are some of North Dakota’s state exemption amounts:

  • Real estate is exempt up to $100,000.00
  • A person is able to keep 75% of their weekly earnings
  • Car value cannot exceed $2,950.00 or $32,000.00 for a modified vehicle that accommodates a disability
  • A person can keep all personal property such as family photos, burial plots, one church pew, family books and Bibles, fuel and food for a year, grain and crops, and all other personal items up to $7,500.00 in value
  • Clothing up to $5,000.00
  • Personal injury and wrongful death compensation up to $7,500.00

Some assets, such as retirement accounts, pensions, and life insurance stay as they are. There is a Wild Card Exemption, which states the head of household can claim $7,500.00 of any personal property if they will not be claiming crops and grain. North Dakota bankruptcy laws state that exemptions cannot be doubled for joint filers.

Federal Exemptions

North Dakota bankruptcy laws do not allow a person to choose between state or federal exemptions like some states. Only state law applies. However, some people are entitled to federal non-bankruptcy exemptions that include a cap on the percentage of wages that can be garnished, civil service benefits, Social Security Benefits, and veteran’s benefits.