North Dakota Bankruptcy Exemptions

The North Dakota bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in North Dakota. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)

An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.

If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.

When you file bankruptcy in North Dakota you may also use certain federal exemptions in addition to your North Dakota exemptions.

ASSET

EXEMPTION DESCRIPTION

LAW SECTION

Homestead

Real property, house trailer or mobile home to $80,000

28-22-02(10), 47-18-01

Insurance

Fraternal benefits society benefits

Life insurance proceeds payable to deceased’s estate, not to a specific beneficiary

Life insurance surrender value to $100,000 per policy, if beneficiary is insured’s relative & owned over 1 year before filing for bankruptcy; no limit if more needed for support; withERISA-qualified benefits, IRAs and Keoghs exempt under 28-22-03.1 (except pensions for disabled veterans), total cannot exceed $200,000

26.1-15.1-18, 26.1-33-40

26.1-33-40

 

 

 

 

28-22-03.1(3)

Miscellaneous

Property of business partnership

45-08-02

Pensions

Disabled veterans’ benefits, except military retirement pay

ERISA-qualified benefits to $100,000 per plan; no limit if more needed for support; with insurance exempt under 28-22-03.1, total cannot exceed $200,000

IRAs to $100,000 per plan; no limit if more needed for support; with insurance exempt under 28-22-03.1, total cannot exceed $200,000

Keoghs to $100,000 per plan; no limit if more needed for support; with insurance exempt under 28-22-03.1, total cannot exceed $200,000

Public employees

28-22-03.1(4) (d)

28-22-03.1(3)

 

 

28-22-03.1(3)

28-22-03.1(3)

 

28-22-19(1)

Personal Property

1. All debtors may exempt:
  • Bible, books to $100 & pictures; clothing
  • Burial plots, church pew
  • Cash to $7500, in lieu of homestead
  • Crops or grain raised on debtor’s tract to 160 acres (64.75 hectares) on 1 tract
  • Food & fuel to last 1 year
  • Motor vehicle to $1200
  • Personal injury recoveries to $7500 (not to include pain and suffering)
  • Wrongful death recoveries to $7500

2. Head of household not claiming crops or grain may claim $5000 of any personal property or:

  • Books & musical instruments to $1500
  • Furniture, including bedsteads & bedding, to $1000
  • Library & tools of professional to $1000
  • Livestock & farm implements to $4500
  • Tools of mechanic & stock in trade to $1000

3. Non-head of household not claiming crops or grain, may claim $2500 of any personal property

28-22-02(1), (4), (5)

28-22-02(2), (3)

28-22-03.1(1)

28-22-02(8)

28-22-02(6)

28-22-03.1(2)

28-22-03.1(4) (b)

28-22-03.1(4) (a)

28-22-03.1(4) (a)

28-22-03

28-22-04(1)

28-22-04(2)

28-22-04(4)

28-22-04(3)

28-22-04(4)

28-22-05

Public Benefits

AFDC

Crime victims’ compensation

Social security

Unemployment compensation

Vietnam veterans’ adjustment compensation

Workers’ compensation

28-22-19(3)

28-22-19(2)

28-22-03.1(4) ( c)

52-06-30

37-25-07

65-05-29

Tools of Trade

See personal property

 

Wages

Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors

32-09.1-03

Wild Card

See personal property

 

For more information on filing bankruptcy in North Dakota explore North Dakota Bankruptcy Law.