North Dakota Bankruptcy Exemptions — What You Keep

Exemptions are the legal rules that determine what property you can keep when you file for bankruptcy. In North Dakota, exemptions are critically important because they define the line between protected and at-risk assets.

North Dakota requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific North Dakota exemption amounts below control what you can protect.

Homestead

$150,000 in equity. North Dakota homestead exemption applies to the principal residence. No declaration is required. North Dakota opts out of the federal § 522(d) exemption list, so residents are limited to North Dakota exemptions (28-22-17). This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.

Personal property §28-22-03

$7,500 aggregate in household goods, furniture, and personal items. This covers household goods, furnishings, clothing, and everyday personal items.

Vehicle §28-22-03.1(2)

$10,000 in equity in one motor vehicle over security interests and liens (up to $50,000 for a vehicle modified at a cost of at least $1,500 to accommodate the owner's permanent physical disability). This protects equity in your car — meaning the value of the vehicle minus what you owe on it.

Wages §32-09.1-03

75% of disposable earnings (or amount exceeding 40× federal minimum wage). This applies to wages already earned but not yet paid at the time of filing.

Wildcard §28-22-03

$7,500 (any personal property not otherwise exempt; head of family). A wildcard exemption can be applied to any property not fully covered by other exemptions.

Retirement accounts §28-22-03.1(9)

ERISA-qualified plans, IRAs, and North Dakota Public Employees Retirement System (NDPERS) are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).

Tools of trade §28-22-03.1(3)

$1,500 in tools, implements, and library of trade or profession. This protects the equipment you need to earn a living.

• In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
• In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.

• Is your home equity within the homestead limit, or does it exceed the cap?
• Do you have a vehicle loan that reduces your equity below the exemption?
• Are there assets that could be reclassified or converted to exempt form before filing?
• Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?