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Bankruptcy in North Dakota

Who Can File Bankruptcy in North Dakota?

In order to become eligible for bankruptcy relief in the State of North Dakota, you will need to meet all of the requirements below.  If you fail to meet even a single one of these eligibility requirements, you may be unable to file bankruptcy in the near future.

-Own property in, operate a business in, or reside in the State of North Dakota

-Have debts which you cannot pay

-Have attended an approved credit counseling program

In addition to these requirements, you will also need to prove that your annual income for the previous year was less than the state average if you wish to file for Chapter 7 bankruptcy.  If your income is above the state average, you will only be allowed to file for Chapter 13 bankruptcy.

What Do I Need To Know Before Filing For Bankruptcy in North Dakota?

In 2005, the federal government passed the largest bankruptcy reform act in the country’s history.  As a result of this reform act, many of the laws which govern bankruptcy proceedings have changed.  In order to ensure you are able to easily navigate this new system, it is vital that you seek the counsel of an experienced attorney.

What Type of Debts Can Be Discharged As Part of a Bankruptcy Proceeding in North Dakota?

In order for a debt to be discharged as part of a Chapter 7 bankruptcy settlement, the debt must be classified as an unsecured debt.  While the classification of unsecured debts will cover the majority of your debts, it will not cover some of your most expensive debts such as a mortgage.  This is because unsecured debts are defined as any debt which does not make use of collateral in order to secure the debt.  Since mortgages and car loans make use of collateral in order to secure the debt, these debts will not be discharged as part of your bankruptcy settlement.  In some cases, you may be able to work out payment arrangements with your creditors in order to keep the property associated with a secured debt if you are able to bring those accounts into a current standing.

Will I lose my house and car if I file for bankruptcy in North Dakota?

Every state has their own set of property exemption laws.  These laws are designed to allow you to protect a certain portion of your assets from being seized to pay your creditors.  In North Dakota, those property exemption laws are as follows:

-Homestead exemption of up to $80,000

-Up to $1,200 in equity in a single motor vehicle (this exemption is raised to $32,000 for –disabled people utilizing a modified motor vehicle due to disability)

-All family pictures and religious materials not exceeding $100 in value

-All other personal property not to exceed $5,000





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