Stop Wage Garnishment in North Dakota: Your Legal Options

Your paycheck is 25% smaller this month. No warning. No conversation. Just a terse letter from HR and a garnishment order you barely understand.

In North Dakota, creditors can take up to a quarter of your disposable earnings to satisfy judgments. But that doesn't mean you're powerless. State and federal law both limit what creditors can seize—and give you clear paths to challenge garnishments that exceed legal limits or ignore your exemptions.

Here's what you can do, step by step.

How Much Can Creditors Take in North Dakota?

Federal law sets the floor. Under the Consumer Credit Protection Act (CCPA), creditors can garnish the lesser of:

• 25% of your disposable earnings, or
• The amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($217.50 per week as of 2025)

North Dakota follows the federal standard but adds one wrinkle: if your weekly disposable income is less than 40 times the federal minimum wage ($290), creditors can't touch it. That means if you bring home $280 a week after taxes, you're protected entirely.

"Disposable earnings" means what's left after mandatory deductions,taxes, Social Security, Medicare. Not your car payment. Not your rent. Creditors calculate garnishment based on what hits your account, not your gross pay.

Exception: Child Support and Taxes

Child support and back taxes ignore the 25% cap. The IRS and state child support agencies can take up to 50-65% of your disposable income, depending on whether you're supporting other dependents. If you're facing both a judgment garnishment and a child support order, the child support gets priority.

Which Debts Trigger Wage Garnishment?

Not all debts lead to garnishment. Creditors need a court judgment first,except in three cases.

Debts that require a lawsuit and judgment:

• Credit card debt
• Medical bills
• Personal loans
• Deficiency balances after repossession

Debts that skip the lawsuit:

• Federal student loans (up to 15% of disposable income)
• Unpaid income taxes (IRS can garnish without suing)
• Child support arrears (enforced through state agencies)

If a credit card company or hospital wants your wages, they must sue you, win a judgment, and then request a garnishment order from the court. That process takes months. If you're just now getting sued, you have time to respond and possibly settle before garnishment starts.

Step 1: Check If You Qualify for Exemptions

North Dakota exempts certain income from garnishment entirely. If any of these apply, creditors can't touch those funds:

• Social Security benefits
• SSI (Supplemental Security Income)
• Veterans benefits
• Disability benefits
• Workers' compensation
• Unemployment benefits
• Pension and retirement income

These protections only work if you keep exempt funds separate. If your Social Security direct deposit mixes with wages in the same account, banks sometimes freeze the whole balance. Open a dedicated account for exempt income and never commingle it with earnings from work.

One exception: child support and federal tax debts can seize Social Security. Nothing else can.

Head of Household Exemption

If you provide more than half the financial support for a dependent,child, elderly parent, disabled spouse,North Dakota reduces the garnishable amount. You're not automatically exempt, but the cap drops, often significantly.

To claim head of household status, file a motion with the court that issued the garnishment order. Bring proof: tax returns showing dependents, rent or mortgage payments, utility bills, grocery receipts. Judges want documentation, not promises.

Step 2: File an Objection to the Garnishment Order

You have 14 days from the date you receive the garnishment notice to object. Miss that window and the garnishment proceeds unchallenged.

Valid grounds for objection:

• The debt isn't yours (mistaken identity, already paid, discharged in bankruptcy)
• The amount exceeds the 25% cap or state minimum thresholds
• Your income is entirely exempt (Social Security, disability)
• The creditor violated notice requirements (failed to notify you of the lawsuit or garnishment)
• You qualify for head of household protection

File your objection with the district court clerk in the county where the judgment was entered. You'll need to complete a "Claim of Exemption" form and attach supporting documents,pay stubs, benefit statements, proof of dependents.

The court schedules a hearing, usually within 10-20 days. The creditor must prove the garnishment is valid and within legal limits. You present your evidence. If you win, the garnishment stops or the amount is reduced. If you lose, it continues as ordered.

One warning: objecting doesn't pause the garnishment. Money keeps coming out of your paycheck while the court decides. If you need immediate relief, you'll need to file for bankruptcy or negotiate a settlement.

Step 3: Negotiate a Payment Plan With the Creditor

Sometimes creditors would rather get paid directly than deal with garnishment paperwork. Garnishment costs them time and legal fees. A voluntary payment plan costs nothing and gives them more control.

Call the creditor or the law firm handling the case. Offer a realistic monthly amount,less than what they're garnishing now, but consistent. Most will agree if it's close to what they'd collect through garnishment.

Get the agreement in writing. Include:

• Total amount owed
• Monthly payment amount
• Payment due date
• Confirmation that garnishment will stop once the agreement is signed

Once you have a signed agreement, send a copy to your employer and the court. Garnishment should stop within one or two pay cycles.

If you default on the payment plan, garnishment resumes immediately,and creditors are less likely to negotiate again.

Step 4: Consider Bankruptcy

Bankruptcy stops garnishment the day you file. Not when your case is approved. Not when you complete the process. The moment the court receives your petition, an automatic stay goes into effect, and creditors must stop all collection activity,including wage garnishment.

Chapter 7 bankruptcy eliminates most unsecured debts (credit cards, medical bills, personal loans) in 3-4 months. If the debt behind your garnishment qualifies, you'll never owe it again. Chapter 13 creates a 3-5 year repayment plan and stops garnishment while you pay creditors through the bankruptcy trustee.

Neither stops child support or most student loan garnishments. And bankruptcy does have consequences: a 7-10 year credit report entry, temporary loss of certain assets in Chapter 7, and years of trustee oversight in Chapter 13.

But if garnishment is taking 25% of every paycheck and you have no way to pay off the debt in the next year, bankruptcy is often the fastest path to stability. Use our bankruptcy screener to see if you qualify.

What Your Employer Must Do

North Dakota law requires employers to:

• Honor valid garnishment orders within 10 days of receipt
• Provide you with a copy of the garnishment order
• Withhold the correct amount (no more than the legal limit)
• Send withheld funds to the creditor or court

Your employer cannot fire you for a single garnishment. Federal law prohibits it. If you face multiple garnishments, protections weaken,but North Dakota generally treats termination for garnishment as wrongful discharge.

If your employer withholds more than 25% of your disposable income, contact the creditor's attorney immediately. If they refuse to correct it, file a motion with the court. Employers don't always calculate garnishment correctly, and mistakes are your responsibility to catch.

What Happens If You Ignore the Garnishment?

Nothing good. Garnishment doesn't go away if you pretend it isn't happening. The money comes out automatically until the debt is satisfied or you take legal action to stop it.

Ignoring the initial lawsuit is what gets most people here. If you don't respond to a summons and complaint, the creditor wins a default judgment. Once they have that judgment, garnishment is almost inevitable.

If you're just now being sued,not yet garnished,respond within 20 days. File an answer. Show up to court. Settlement is always easier before judgment. Once garnishment starts, you're negotiating from weakness.

The Bottom Line

Wage garnishment in North Dakota is capped at 25% of your disposable income, but exemptions, head of household status, and procedural defenses can reduce or eliminate it. You have 14 days to object once you receive notice. If negotiation and exemptions don't work, bankruptcy stops garnishment immediately and often wipes out the underlying debt.

You're not stuck. But you do need to act before the next paycheck disappears.

If wage garnishment is one problem among many and you're considering bankruptcy, start here: File Bankruptcy. You'll get a clear breakdown of your options and what to expect.