North Dakota Homestead Exemption
Almost every state provides protection for equity in the family home, and many states have increased the amount of protection in recent years. Seven states offer unlimited protection. Most states are not as generous.
New Federal Residency Requirement
Under the new bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $160,375. (If your state's exemption offers less than this amount, the law is irrelevant to you.) The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that state's homestead protection.
Home Valuation tool
Just add your street address to get an estimate of the value of your house, and all others in your neighborhood. (Note: Does not serve all areas, and valuations are imperfect estimates only.)
North Dakota Insurance exemptions
Virtually all states protect life insurance proceeds in some manner or another. Some restrict it to proceeds paid to a dependent. Many states also protect the cash-value or loan-value of insurance policies.
If a substantial amount of your assets are in life insurance, you may want to consult a professional to determine the extent to which those policies are exempt.
- Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract
N.D. Cent. Code § 28-22-03.1 (4)
- Fraternal benefit society benefits
N.D. Cent. Code § 26.1-15.1-18
N.D. Cent. Code § 26.1-33-40
- Life insurance proceeds payable to deceased's estate, not to a specific beneficiary
N.D. Cent. Code § 26.1-33-40
- Life insurance surrender value to $8,000 on policy insuring debtor or dependent
N.D. Cent. Code § 28-22-03.1 (5)
Miscellaneous other exemptions for North Dakota
North Dakota Pensions & Retirement Savings Exemptions
The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, even if you are using state law exemptions. 11 U.S.C. § 522(b)(3)(C). (See Help Topic: Special Rules For Retirement Accounts.)
The law protects up to $1,283,025 of any pension or retirement fund that qualifies forspecial tax treatment under Internal Revenue Code sections 401,402, 403, 408, 408A, 414, 457, or 501(a).
- Disabled veterans' benefits, except military retirement pay
N.D. Cent. Code § 28-22-03.1 (8)(b)
- ERISA-qualified retirement funds, IRAs, & Keoghs to $100,000 per plan; or $200,000 for all accounts; no limit if more needed for support
N.D. Cent. Code § 28-22-03.1 (7)
- Payments from an ERISA-qualified stock bonus, profit-sharing, annuity or similar plan, to extemt extent necessary for support.
N.D. Cent. Code § 28-22-03.1 (e)
- Public employees deferred compensation
N.D. Cent. Code § 54-52.2-06
- Public employees pensions
N.D. Cent. Code § 28-22-19 (1)
North Dakota Personal Property Exemptions
This category covers your car, your non-retirement bank accounts, and most of your other personal possessions, other than your house.
States vary widely on how generous they are in this area. Some exemptions may be for any combination of property up to an aggregate amount. Other exemptions apply only to specific items, such as jewelry.
Remember that an exemption will not protect your car from being repossessed by the holder of the car loan you used to purchase the vehicle if you pledged the vehicle as security for the loan. To keep the car, you will have to pursue other options such as 'redemption' or 'reaffirmation.' See the help topics and How to File for Chapter 7 Bankruptcy for more on this.
- 1. All debtors may exempt: Bible, schoolbooks; other books
Burial plots, church pew;
Wearing apparel to $5,000, and all clothing of the debtor & debtor's family
Family pictures ;
Crops or grain raised by debtor on 160 acres where debtor resides; 28-22-02(8)
Food & fuel to last 1 year
Insurance proceeds for exempt property, if held in cash or invested in other exempt property
Motor vehicle to $2,950 or $32,000 for vehicle that has been modified to accommodate owner's disability 28-22-03.1(2)
Personal injury recoveries to $7,500
Wrongful death recoveries to $7,500
N.D. Cent. Code § 28-22-02
N.D. Cent. Code § 28-22-03.1
- Head of household not claiming crops or grain may claim $7,500 of any personal property
N.D. Cent. Code § 28-22-03
- Non-head of household not claiming crops or grain may claim $3,750 of any personal property
N.D. Cent. Code § 28-22-05
- Payments to debtor or to individual of whom debtor is a dependent, on account of bodily injury or financial loss to $18,450
N.D. Cent. Code § 28-22-03.1 (9)(d)
- Professionally prescribed health aids for the debtor or a dependent
N.D. Cent. Code § 28-22-03.1 (6)
Auto Valuation Tools:
Both of these websites offer interactive tools to determine the current value of your used car.
North Dakota Public Benefits Exemptions
Most states exempt public benefits, consistent with the notion that such benefits are intended as a safety net for the recipient.
- Crime victims' compensation
N.D. Cent. Code § 28-22-19 (2)
N.D. Cent. Code § 28-22-03.1 (9)(a)
- Old age and survivor insurance program benefits
N.D. Cent. Code § 52-09-22
- Public assistance
N.D. Cent. Code § 28-22-19 (3)
- Social Security
N.D. Cent. Code § 28-22-03.1 (8)(a)
- Unemployment compensation
N.D. Cent. Code § 52-06-30
N.D. Cent. Code § 28-22-03.1 (8)(c)
- Workers' compensation
N.D. Cent. Code § 65-05-29
North Dakota Tools of Trade Exemptions
These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.
- Tools, implements, or professional books of the trade of the debtor or the trade of a dependent of the debtor to $1,500
N.D. Cent. Code § 28-22-03.1 (3)
North Dakota Wage Garnishment Laws
Most states have a wage garnishment law. In some states, wage garnishment laws can be used in bankruptcy as an exemption to protect income that you had coming due, but not yet received, as of the day you filed, for work you had already done -- so called "earned but unpaid wages".
In some states, the wage garnishment law protects not only wages owed to you, but also wages already in your possession and saved over time preferably holding it in a separate bank account. In other states wage garnishment laws do not protect wages once they are they are in your possession.
North Dakota Wild Card Exemption
Most, but not all, states allow a so-called "wild-card" exemption that can apply to any property. The wild card exemption can be of particular help if one or more of your other exemptions falls short of protecting your equity. You may split your wild card exemption amount over multiple items and stack it atop other exemptions as needed to protect exposed equity.