Bankruptcy in North Dakota (2026): Exemptions & Means Test

Bankruptcy is a federal legal process, but what you can keep when you file depends heavily on North Dakota law. North Dakota has opted out of the federal bankruptcy exemptions, so filers whose exemptions are governed by state law must use the North Dakota exemption system rather than the federal list. This page explains North Dakota's opt-out status, its homestead and other property exemptions, the Chapter 7 means test using current state income figures, and where North Dakota residents file. It is general legal information, not legal advice.

Information last verified on June 23, 2026. Exemption amounts and means-test income figures change periodically; confirm current amounts before relying on them.

Scope: This article explains how North Dakota exemptions and the federal means test apply to consumer bankruptcy. It is general legal information, not legal advice, and not a substitute for consulting a North Dakota bankruptcy attorney about your situation.

Does North Dakota Use State or Federal Bankruptcy Exemptions?

North Dakota has opted out of the federal bankruptcy exemptions. Under 11 U.S.C. 522(b)(2) and N.D.C.C. 28-22-17, residents are not entitled to the federal exemptions in 11 U.S.C. 522(d) and must claim the exemptions allowed by North Dakota law.

The federal Bankruptcy Code lets each state decide whether its residents may choose the federal exemption list. North Dakota is one of roughly 35 states that opted out. Section 28-22-17 of the North Dakota Century Code, titled "Nonavailability of federal bankruptcy exemptions," states that residents "are not entitled to the federal exemptions" and "are limited to claiming those exemptions allowable by North Dakota law." Certain federal nonbankruptcy exemptions, such as Social Security, still apply.

Which state's exemptions apply also depends on a residency rule. The Bankruptcy Code generally requires that you have been domiciled in a state for the 730 days (two years) before filing for that state's exemptions to apply. People who moved recently may have to use the exemptions of a prior state. Confirm your residency history with an attorney before assuming North Dakota rules apply.

The North Dakota Homestead Exemption

North Dakota protects up to $150,000 of equity in a home, over and above liens and encumbrances. The legislature raised this amount from $100,000 effective July 1, 2023 (N.D.C.C. 47-18-01).

The homestead exemption is set in N.D.C.C. 47-18-01. It protects the land on which you reside and the dwelling on it, with improvements and appurtenances, "the total not to exceed one hundred fifty thousand dollars in value, over and above liens or encumbrances or both." That $150,000 figure reflects a 2023 increase; the prior cap was $100,000, so older guides may understate the protection. The statute also requires that any tracts claimed be contiguous.

There are limits. The homestead does not stop a forced sale for purchase-money debt on the home, for property taxes, or for mechanics', construction, or laborers' liens for work or materials used to improve the property (N.D.C.C. 47-18-04). A voluntary mortgage signed by both spouses, or by an unmarried owner, is also enforceable. Spouses cannot stack two homestead exemptions on the same property.

A separate federal rule can override the state amount for recently acquired homes. Under 11 U.S.C. 522(p), a debtor cannot exempt more than $214,000 in homestead value acquired during the 1,215 days (about 40 months) before filing, for cases filed between April 1, 2025 and March 31, 2028. Because North Dakota's homestead cap is below that federal ceiling, the 522(p) limit rarely binds here, but the date you acquired your equity can still matter in larger cases.

Vehicle, Personal Property, Wages, and Other Exemptions

North Dakota's alternative exemptions include a motor vehicle up to $10,000, tools of the trade up to $10,000, and up to $10,000 of any property in lieu of the homestead, but these are not available to a debtor who claims the homestead exemption (N.D.C.C. 28-22-03.1).

North Dakota's exemption scheme has two layers. First are the "absolute" exemptions in N.D.C.C. 28-22-02, available to a head of family, which include the homestead, clothing up to $5,000, family pictures and Bibles, a burial plot, food and fuel for one year, and crops grown on up to 160 acres of the debtor's home tract.

Second are additional and alternative exemptions. A head of family may select up to $7,500 of any other personal property under N.D.C.C. 28-22-03, and an unmarried person without dependents may select up to $3,750 under N.D.C.C. 28-22-05. These function like a wildcard but cannot be applied to a real estate interest. Separately, N.D.C.C. 28-22-03.1 offers a set of alternative exemptions, including up to $10,000 of any property in lieu of the homestead, a motor vehicle up to $10,000 (or up to $50,000 for a vehicle modified at least $1,500 for an owner's disability), and tools or professional books of the trade up to $10,000. A key catch is that the 28-22-03.1 alternatives are not available if the debtor, spouse, or other head of the family has claimed the homestead exemption, so filers generally choose one path or the other.

Wages are protected through North Dakota's garnishment limits in N.D.C.C. 32-09.1, which generally shield the greater of 75% of disposable earnings or an amount tied to the federal minimum wage, with additional protection for dependents. Retirement funds in qualified accounts are exempt up to $200,000 per account, or $400,000 in aggregate, with that cap lifted to the extent reasonably necessary for support (N.D.C.C. 28-22-03.1(7)).

The Chapter 7 Means Test in North Dakota

For cases filed on or after April 1, 2026, the North Dakota median family income is $73,549 for 1 earner, $96,352 for 2, $106,686 for 3, and $137,817 for a family of 4. The U.S. Trustee Program updates these figures about twice a year (justice.gov/ust).

The means test decides whether you can file Chapter 7. It starts by comparing your household's current monthly income, annualized, to the median family income for a North Dakota household of your size. If your income is at or below the North Dakota median, you generally pass and can proceed under Chapter 7. If it is above the median, you complete a second part of the test that subtracts allowed expenses to see whether you have meaningful disposable income; if you do, Chapter 7 may be presumed abusive and Chapter 13 may be the path instead.

The current North Dakota median family income figures published by the U.S. Trustee Program, for cases filed on or after April 1, 2026, are:

For households larger than four, the U.S. Trustee Program adds $11,100 per additional person. These figures are derived from Census Bureau data and are revised roughly twice a year, typically in spring and fall, so always confirm the current numbers for your filing date.

Chapter 7 vs. Chapter 13 and the Automatic Stay

Chapter 7 discharges most unsecured debts after a trustee liquidates any nonexempt property; Chapter 13 keeps your property in exchange for a three-to-five-year repayment plan. Both trigger the automatic stay, which immediately halts most collection, foreclosure, and garnishment.

Chapter 7 is a liquidation. A trustee can sell property that is not protected by an exemption and distribute the proceeds to creditors, then most remaining unsecured debts are discharged, usually within a few months. Because North Dakota's homestead and personal-property exemptions cover meaningful equity, many filers keep all or nearly all of their property in Chapter 7.

Chapter 13 is a reorganization for people with regular income who want to catch up on a mortgage or car loan, who have nonexempt assets they want to keep, or who do not qualify for Chapter 7. You repay some or all of your debts through a court-approved plan lasting three to five years, and you receive a discharge when you complete it.

The moment you file either chapter, the automatic stay under 11 U.S.C. 362 takes effect. It stops most collection calls, lawsuits, wage garnishment, and foreclosure or repossession activity while your case proceeds. The stay is one of the most powerful immediate effects of filing, though some obligations, such as certain domestic-support actions, are not stayed.

Where North Dakota Residents File

North Dakota bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of North Dakota, a single statewide district.

All federal bankruptcy filings for the state go to the single U.S. Bankruptcy Court for the District of North Dakota. The court handles cases for the entire state. Before filing, you must complete a credit-counseling course from an approved provider, and before discharge, a debtor-education course.

What Bankruptcy Can and Cannot Do

Bankruptcy discharges most unsecured debts such as credit cards and medical bills, but it generally does not erase most student loans, recent income taxes, child support, or alimony.

A discharge wipes out personal liability for most general unsecured debts, including credit cards, medical bills, and many personal loans. It does not eliminate most student loans (absent a separate showing of undue hardship), recent income tax debts, domestic-support obligations like child support and alimony, most government fines, or debts from fraud. Secured debts like a mortgage or car loan can be discharged as a personal obligation, but the lender keeps its lien, so you must keep paying if you want to keep the collateral.

Because North Dakota's exemption rules require choosing between the homestead and the alternative exemptions, and because the means test and homestead figures are technical, it is worth reviewing your situation with a licensed North Dakota bankruptcy attorney before filing. The figures on this page were verified in June 2026 and should be confirmed against the current statutes and U.S. Trustee Program tables.

This is general legal information, not legal advice. Exemption statutes and means-test income figures change; the amounts here were verified in June 2026. Confirm current figures and how they apply to you with a licensed North Dakota bankruptcy attorney.

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