Stop Wage Garnishment in North Dakota: Your Legal Rights

Wage garnishment can destroy your financial stability. One missed payment turns into a court order taking money from your paycheck.

You have options to fight back. North Dakota law protects you from excessive garnishment and gives you legal tools to stop it.

The state limits how much creditors can take. You can challenge the garnishment, claim exemptions, or negotiate a better deal. Understanding your rights is the first step to keeping your earnings.

North Dakota Wage Garnishment Laws

North Dakota follows strict rules about wage garnishment. Both state and federal laws protect your income under the Consumer Credit Code and the Federal Consumer Credit Protection Act.

Here are the key protections you need to know:

• Garnishment limits: Creditors can take only 25% of your disposable earnings or the amount exceeding 40 times the federal minimum wage per week ($290), whichever is less.
• Eligible debts: Credit card bills, medical debt, personal loans, and student loans qualify for garnishment.
• Head of household protection: If you support a dependent with more than half their needs, you get reduced garnishment amounts.
• Required notice: Creditors must send written notice before garnishing your wages. You have the right to challenge it.
• Exempt income: Social Security, disability benefits, veteran benefits, workers’ compensation, and retirement income are protected.
• Employer duties: Your employer must follow garnishment orders and give you a copy with information about your rights.

These protections give you leverage. You can use them to challenge unfair garnishments and keep more of your paycheck.

Object to the Wage Garnishment

Objecting means formally challenging the garnishment order in court. You question whether the creditor has the right to take your wages.

Valid reasons to object include:

• The debt is not yours or the amount is wrong
• Your income is legally protected from garnishment
• The creditor violated your consumer rights or failed to provide proper notice
• The garnishment amount exceeds North Dakota’s legal limits

You must file a written objection with the court that issued the order. Attend the hearing prepared with evidence supporting your case.

Before going to court, consider settling the debt directly. Our partner Solo helps you negotiate with creditors and reach agreements without courtroom battles.

File a Claim of Exemption

A claim of exemption protects income that North Dakota law says creditors cannot touch. You must file within ten days of receiving the garnishment order.

Common exemptions include:

• You are the head of household supporting your family
• Your income falls below the federal poverty line
• You receive Social Security, disability, or veteran benefits
• You have retirement accounts like 401(k) plans, IRAs, or pension plans

Document your exemption with proof. Bank statements, benefit letters, and tax returns strengthen your case.

Real World Example

Sarah received a garnishment order for $430 from a credit card company. She owed $5,500 on an old medical bill.

Her only income came from Social Security disability benefits. She cannot work due to a chronic illness.

Sarah filed a claim of exemption immediately. She provided documentation showing her disability benefits as her sole income source. The court canceled the garnishment within two weeks.

Negotiate with the Creditor

Creditors want their money. Garnishment costs them time and legal fees. Many will negotiate a better deal if you reach out first.

You can propose a settlement for less than the full amount. Offer a lump sum payment or a structured payment plan over a few months.

Negotiating works best when you act quickly. Contact the creditor before the garnishment starts taking money from your paycheck.

Our partner Solo handles settlement negotiations for you. The platform sends offers, tracks responses, and manages all documentation. Your personal information stays protected throughout the process.

File for Bankruptcy

Bankruptcy stops wage garnishment immediately through an automatic stay. The moment you file, creditors must halt collection efforts.

Chapter 7 bankruptcy eliminates most unsecured debts like credit cards and medical bills. Chapter 13 creates a repayment plan over three to five years.

Bankruptcy damages your credit score. But if you are drowning in debt, the fresh start may be worth it.

You need to qualify based on income and debt levels. A bankruptcy attorney can evaluate your situation and explain your options.

Challenge the Underlying Judgment

Creditors need a court judgment before garnishing your wages. If you never responded to the lawsuit, the court likely issued a default judgment.

You can challenge the judgment if:

• You were never properly served with the lawsuit
• The debt is past the statute of limitations
• The creditor cannot prove you owe the debt
• The creditor violated the Fair Debt Collection Practices Act

File a motion to vacate the judgment. Present evidence showing why the judgment is invalid.

Winning vacates the judgment and stops the garnishment. You get another chance to defend yourself against the debt claim.

Pay Off the Debt

Paying eliminates the garnishment at its source. Once you satisfy the debt, the creditor has no reason to take your wages.

Scrape together funds from savings, side work, or family loans. Paying now saves you from months of reduced paychecks.

If you cannot pay the full amount, negotiate a settlement. Creditors often accept 40-60% of the balance to close the account.

Get any settlement agreement in writing before you pay. Confirm the creditor will release the garnishment immediately upon payment.

Know Your Rights as an Employee

North Dakota law protects you from employer retaliation. Your boss cannot fire you because of a single wage garnishment.

Federal law under the CCPA prohibits discharge for one garnishment. Multiple garnishments may give your employer grounds to terminate you.

Your employer must follow the garnishment order exactly. They cannot take more than the legally allowed amount from your paycheck.

If your employer withholds too much, file a complaint with the North Dakota Department of Labor. You may be entitled to reimbursement.

Act Quickly to Protect Your Income

Time matters when fighting wage garnishment. Most exemptions and objections have tight deadlines.

Review the garnishment order immediately. Note all deadlines and required actions.

Gather documentation supporting your case. Pay stubs, bank statements, and benefit letters prove your exemption claims.

Contact a debt attorney if you feel overwhelmed. Many offer free consultations to review your situation.

Do not ignore the garnishment. Taking action now preserves more of your income and protects your financial future.