Debt relief in North Dakota: collection rules, time limits and your options
Updated November 9, 2026
North Dakota at a glance (checked November 2026)
| North Dakota | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years |
| Wage garnishment for consumer debt | Up to 25% of take-home pay, minus $20 a week for each dependent; weekly pay up to $290 is protected |
| State debt collection law | Collection agency law (N.D.C.C. chapter 13-05) |
| Who licenses debt collectors | Department of Financial Institutions |
| Where to complain | Department of Financial Institutions, the North Dakota Attorney General, and the CFPB |
Debt collection rules in North Dakota
Anyone collecting debts from people who live in North Dakota needs a collection agency license from the Department of Financial Institutions (N.D.C.C. chapter 13-05). That includes debt buyers, even when they hire a licensed agency to do the collecting. You can check a collector's license on NMLS Consumer Access.
The federal Fair Debt Collection Practices Act sets most of the rules for how collectors behave. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, or misstate what you owe. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
How long creditors have to sue
North Dakota gives creditors 6 years for most debts, including credit cards, personal loans and medical bills, whether or not there's a written contract (N.D.C.C. 28-01-16). The clock usually starts when you default.
Once 6 years have passed, a collector can still ask you to pay but can't sue you or threaten to. Get advice before paying anything on a very old debt. If a creditor wins in court, the judgment lasts 10 years.
What can be garnished in North Dakota
A creditor with a judgment can take the lesser of 25% of your take-home pay or the amount you earn above $290 a week, which is 40 times the federal minimum wage (N.D.C.C. 32-09.1-03). That protects more than federal law does.
The amount a creditor can take also drops by $20 a week for each dependent family member who lives with you. To get it, give your employer a signed list of your dependents within 10 days after you receive the garnishment papers. Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in North Dakota
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Look for an agency accredited by the NFCC or FCAA.
- Would one loan cost less? Our debt consolidation calculator compares a single loan with what you're paying on your cards now.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: North Dakota makes you use its own exemption list rather than the federal one, including a homestead exemption for the home you live in. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- North Dakota Department of Financial Institutions licenses collection agencies and takes complaints about them.
- North Dakota Attorney General, consumer complaints mediates disputes with businesses; call 701-328-3404 or 1-800-472-2600 in North Dakota.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Legal Services of North Dakota gives free civil legal help to people with low incomes and seniors; call 1-800-634-5263, or 1-866-621-9886 if you're 60 or older.
General information about North Dakota law, not legal advice. Checked November 2026.