North Dakota debt statute of limitations

North Dakota limitation periods by type of debt

North Dakota applies a 6-year period to contracts, express or implied.

What the North Dakota statute says

“The following actions must be commenced within six years after the claim for relief has accrued: 1. An action upon a contract, obligation, or liability, express or implied, subject to the provisions of sections 28-01-15 and 41-02-104.”
N.D. Cent. Code § 28-01-16(1)

“The following actions must be commenced within six years after the claim for relief has accrued: 1. An action upon a contract, obligation, or liability, express or implied, subject to the provisions of sections 28-01-15 and 41-02-104.”
N.D. Cent. Code § 28-01-16(1)

Does paying restart the clock in North Dakota?

An acknowledgment or promise only counts if it is in a signed writing (N.D. Cent. Code § 28-01-36).

“No acknowledgment or promise is sufficient evidence of a new or continuing contract, whereby to take the case out of the operation of this chapter, unless the same is contained in some writing signed by the party to be charged thereby, but this section does not alter the effect of any payment of principal or interest.”
N.D. Cent. Code § 28-01-36

North Dakota’s own debt collection law

North Dakota's collection agency law (N.D.C.C. ch. 13-05) requires a state license to engage in debt collection when the debtor lives in North Dakota.

“Except as otherwise provided in this chapter, no person, other than a collection agency licensed and authorized under this chapter, may engage in debt collection in the state of North Dakota without a collection agency license issued by the commissioner. A person engages in debt collection in North Dakota if the debtor resides in North Dakota.”
N.D. Cent. Code § 13-05-02 (ch. 13-05, Collection Agencies)

If a creditor wins a judgment in North Dakota

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different North Dakota rules take over.

How long a judgment lasts

In North Dakota, a judgment first docketed on or after August 1, 2021 must be canceled of record twenty years after it is docketed; older judgments are canceled after ten years unless renewed (twenty years if renewed).

“For judgments initially docketed before August 1, 2021, after ten years after the entry of a judgment that has not been renewed, or after twenty years after the entry of a judgment that has been renewed, the judgment must be canceled of record. 2. For judgments initially docketed on or after August 1, 2021, after twenty years after the entry of a judgment is docketed, the judgment must be canceled of record.”
N.D. Cent. Code § 28-20-35

Wage garnishment

North Dakota limits wage garnishment to the lesser of 25% of weekly disposable earnings or the amount above 40 times the federal minimum hourly wage, reduced by $20 per week for each dependent family member living with the debtor (if the debtor provides the required list).

“The maximum part of the aggregate disposable earnings of an individual for any workweek which is subject to garnishment may not exceed the lesser of: a. Twenty-five percent of disposable earnings for that week. b. The amount by which disposable earnings for that week exceed forty times the federal minimum hourly wage”
N.D. Cent. Code § 32-09.1-03(1)-(2)

Small claims court

North Dakota small claims court handles claims for money (and certain other relief) where the amount claimed does not exceed $15,000.

“when the value of the agreement or the amount claimed by the plaintiff or the defendant does not exceed fifteen thousand dollars.”
N.D. Cent. Code § 27-08.1-01(1)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how North Dakota treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in North Dakota?

6 years for credit-card debt and 6 years on a written contract, under N.D. Cent. Code § 28-01-16. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in North Dakota?

An acknowledgment or promise only counts if it is in a signed writing (N.D. Cent. Code § 28-01-36).

Does North Dakota have its own debt collection law?

North Dakota's collection agency law (N.D.C.C. ch. 13-05) requires a state license to engage in debt collection when the debtor lives in North Dakota. (N.D. Cent. Code § 13-05-02 (ch. 13-05, Collection Agencies)).

How long does a court judgment last in North Dakota?

In North Dakota, a judgment first docketed on or after August 1, 2021 must be canceled of record twenty years after it is docketed; older judgments are canceled after ten years unless renewed (twenty years if renewed). (N.D. Cent. Code § 28-20-35).

How much of my pay can be garnished in North Dakota?

North Dakota limits wage garnishment to the lesser of 25% of weekly disposable earnings or the amount above 40 times the federal minimum hourly wage, reduced by $20 per week for each dependent family member living with the debtor (if the debtor provides the required list). (N.D. Cent. Code § 32-09.1-03(1)-(2)).

What if I am sued on an old debt in North Dakota?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.