North Dakota debt: six years, and not every payment restarts the clock
North Dakota gives creditors six years on credit cards and other contracts. Unlike many states, a small payment does not automatically restart that clock: it has to meet a specific test. And every collector needs a state license.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
North Dakota at a glance
- Notes, contracts, credit cards
- 6 years (28-01-16)
- Sale of goods, leases
- 4 years
- Part payment restarts it
- Only if it meets a strict test
- Wage garnishment
- Lesser of 25% or above 40 × federal minimum
- Per dependent
- $20 a week less
- Collector license
- DFI, $20,000 bond
General information about North Dakota law, with sources below. Not legal advice.
Six years in North Dakota
Six years for actions on notes and contracts, including credit card debt, with no separate rule for written contracts and open accounts (N.D. Cent. Code 28-01-16 and 41-03-18). Contracts for sale and leases have four years under the Uniform Commercial Code.
A partial payment restarts the clock for the whole debt only if it is voluntary, clearly for this debt, and made and accepted as part payment of the larger debt in a way consistent with intending to pay all of it. If a collector says a small payment restarted the clock, ask whether it met that test.
Garnishment and dependents
A garnishment can take no more than the lesser of 25% of disposable weekly earnings or the amount above 40 times the federal minimum wage (N.D. Cent. Code 32-09.1-03). The amount that can be garnished is reduced by $20 a week for each dependent family member living with you, and exemptions must be claimed by affidavit. Judgments can be enforced for ten years (N.D. Cent. Code 28-01-15).
North Dakota's protections sit on top of federal law; our page on stopping a wage garnishment explains both.
Whether a payment would restart the 6-year limit is covered, state by state, in our page on time-barred debt.
Limits vary a lot between states: by comparison, South Dakota sets 6 years and Arizona sets 6 years for similar debts.
Sued in North Dakota? Do not miss the deadline: read how to get a debt lawsuit dismissed before you respond.
Licensed collectors only
Anyone collecting debts from a North Dakota resident must hold a collection agency license from the Department of Financial Institutions, with a $20,000 surety bond and minimum net worth (N.D. Cent. Code 13-05-02). A written dispute inside the validation period makes a collector stop until it mails verification.
To make a collector prove a debt in North Dakota, send a debt validation letter within the dispute window.
North Dakota residents often hear from national agencies like IC System and Jefferson Capital Systems; see our guides to each.
Questions people ask about debt in North Dakota
What is the statute of limitations on credit card debt in North Dakota?
Six years under N.D. Cent. Code 28-01-16, with no separate rule for open accounts.
Does any payment restart the clock in North Dakota?
No. A partial payment restarts it only if it is voluntary, clearly for this debt, and consistent with intending to pay all of it.
How much of my wages can be garnished in North Dakota?
The lesser of 25% of disposable weekly earnings or the amount above 40 times the federal minimum wage, reduced by $20 a week for each dependent.
Do collectors need a license in North Dakota?
Yes, from the Department of Financial Institutions, with a $20,000 bond and minimum net worth.
How long does a judgment last in North Dakota?
Ten years under N.D. Cent. Code 28-01-15.