North Dakota Credit Card Debt: Statute of Limitations & Laws (2026)

North Dakota’s 6-year SOL

Credit card debt in North Dakota is treated as a written contract claim. NDCC § 28-01-16(1) sets a 6-year limitations period for contracts. The clock runs from the cardholder’s last payment or written acknowledgment.

The North Dakota Supreme Court in Jordan v. Anderson and related cases confirmed credit card debt qualifies as a written contract under the 6-year rule. After expiration, the debt is time-barred. The consumer must affirmatively raise the defense in a written answer.

North Dakota district court answers are due within 21 days of personal service or 30 days of substituted service under North Dakota Rule of Civil Procedure 12.

The dependent wage allowance, unique in the Plains

NDCC § 32-09.1-03 caps wage garnishment at the lesser of:

• 25 percent of disposable earnings
• The amount by which weekly disposable earnings exceed 40 times the federal minimum wage (290 dollars protected in 2026)
• Minus 20 dollars per week per dependent supported by the debtor

The dependent allowance is the unique North Dakota feature. A worker with 3 dependents reduces the garnishment by 60 dollars per week (20 dollars times 3). For a worker earning 700 dollars disposable per week with 3 dependents, the garnishment is:

• 25 percent of 700 dollars equals 175 dollars
• Minus 60 dollars dependent allowance equals 115 dollars per week

The dependent allowance is automatic once the debtor files the dependent claim form with the court. Documentation typically includes birth certificates, school enrollment, and proof of dependency.

The 100,000 dollar homestead

NDCC § 47-18-01 protects 100,000 dollars of equity in a homestead from civil judgment creditors. The acreage limits are not more than 4 contiguous lots within a city or town and up to 160 acres outside city limits.

The 100,000 dollar cap is moderate. For Bismarck or Fargo homeowners with significant equity, the exemption may not fully protect the home. North Dakota does not provide an unlimited homestead like neighboring South Dakota.

Personal property exemptions under NDCC § 28-22-03 add to the asset protection: 2,950 dollars in vehicle equity, 7,500 dollars in tools of trade, household goods up to 5,000 dollars, and other categorical exemptions.

Settlement math for a North Dakota cardholder with a 6,800 dollar judgment

A Cass County (Fargo) resident with a 6,800 dollar credit card judgment, supporting 2 dependents, earning 700 dollars disposable per week, faces this calculation:

• 25 percent of 700 dollars equals 175 dollars
• Minus 40 dollars dependent allowance (2 dependents times 20 dollars) equals 135 dollars per week

That is 7,020 dollars per year. North Dakota post-judgment interest accrues at 6 percent under NDCC § 32-03-05, adding 408 dollars in year one. Net judgment reduction: 6,612 dollars per year.

A lump-sum settlement at 35 percent of the principal is 2,380 dollars. With a satisfaction of judgment filed in the district court, the garnishment terminates within 10 to 14 days. The pillar payoff calculator models multi-year garnishment cost against settlement cash today.

North Dakota versus Plains neighbors

North Dakota’s dependent allowance is the only one of its kind in the region. Combined with the 40-times min-wage floor, it produces meaningful protection for working families.

Five North Dakota-specific paths

1. File the dependent allowance claim with the court. Each dependent reduces the weekly garnishment by 20 dollars. For a worker with 3 dependents, that is 60 dollars per week or 3,120 dollars per year. Documentation should include birth certificates and proof of support.

2. Plead the 6-year SOL in your answer. North Dakota district court answers are due within 21 to 30 days. Plead NDCC section 28-01-16 limitations defense if applicable. The defense is waived if not affirmatively raised.

3. Stack North Dakota exemptions. The 100,000 dollar homestead, 2,950 dollar vehicle, 7,500 dollar tools of trade, 5,000 dollar household goods, and additional categorical exemptions stack to about 117,000 dollars per individual.

4. Use the 40-times min-wage floor for low-wage workers. North Dakota workers earning 290 dollars or less in disposable weekly wages are completely exempt from credit card garnishment under NDCC section 32-09.1-03.

5. File Chapter 7 if non-exempt unsecured debt exceeds 25,000 dollars and income is below the North Dakota median. North Dakota median household income for the 2026 Chapter 7 means test is 81,236 dollars (1 person) per the U.S. Trustee Program. Filers under the median qualify automatically. The automatic stay under 11 U.S.C. § 362 halts garnishment immediately.

Decision tree

• Working family with multiple dependents: file the dependent allowance claim, reduce garnishment to floor.
• Last payment more than 6 years ago: answer with NDCC section 28-01-16 SOL defense.
• Weekly disposable wages 290 dollars or less: zero garnishment, judgment is largely uncollectible from wages.
• Multiple judgments over 25,000 dollars and income below state median: file Chapter 7.

Primary North Dakota and federal sources

• NDCC § 28-01-16, 6-year statute of limitations
• NDCC § 32-09.1-03, wage garnishment cap and dependent allowance
• NDCC § 47-18-01, homestead exemption
• NDCC § 28-22-03, personal property exemptions
• NDCC chapter 13-05, debt collection
• North Dakota Attorney General Consumer Protection
• Legal Services of North Dakota

Sibling state pages

• South Dakota credit card debt laws
• Minnesota credit card debt laws
• Iowa credit card debt laws
• Nebraska credit card debt laws

Related calculator tools

• Credit card payoff calculator
• Debt management plan calculator
• Balance transfer calculator

Frequently asked questions

What is the statute of limitations on credit card debt in North Dakota?

Six years from the date of last payment or written acknowledgment, under North Dakota Century Code section 28-01-16. The same 6-year period applies to contracts and open accounts. The North Dakota Supreme Court in Jordan v. Anderson confirmed credit card debt falls under the 6-year contract limitations period. After expiration, the debt is time-barred and the consumer must affirmatively raise the defense in a written answer.

How much can a credit card creditor garnish in North Dakota?

North Dakota caps wage garnishment at 25 percent of disposable earnings under NDCC section 32-09.1-03, matching the federal default. The garnishment is also limited to the amount by which disposable earnings exceed 40 times the federal minimum wage (290 dollars per week in 2026), more protective than the federal 30-times floor. The debtor receives an additional 20 dollars per week per dependent under NDCC section 32-09.1-03(2).

What is the North Dakota homestead exemption against credit card judgments?

North Dakota Century Code section 47-18-01 protects 100,000 dollars of equity in a homestead from civil judgment creditors. The acreage limits are not more than 4 contiguous lots within a city or town and up to 160 acres outside city limits. Personal property exemptions under NDCC section 28-22-03 include 2,950 dollars in vehicle equity, 7,500 dollars in tools of trade, and additional household goods exemptions.

Can a debt buyer sue me in North Dakota without proof of the original cardholder agreement?

North Dakota Century Code chapter 13-05 regulates debt collection. The North Dakota Rules of Civil Procedure Rule 8 requires plaintiffs to state a plausible claim with sufficient documentation. Debt buyers must produce the original cardholder agreement, the assignment chain, and a sworn balance statement at trial. North Dakota district courts have dismissed debt-buyer cases when the plaintiff cannot authenticate these documents.

Where do I file a North Dakota consumer complaint against a credit card collector?

The North Dakota Attorney General Consumer Protection and Antitrust Division accepts complaints at attorneygeneral.nd.gov/consumer-resources/consumer-complaints. The North Dakota Department of Financial Institutions licenses regulated lenders and collection agencies. Legal Services of North Dakota at legalassist.org provides free self-help resources. Federal FDCPA complaints also go to the Consumer Financial Protection Bureau.