Bankruptcy shouldn't have to be thought of in a negative light. The act of filing for bankruptcy was intended to give people facing financial struggles the opportunity to begin again with a clean slate. If you've been considering the possibility of filing for bankruptcy in North Dakota, it might just be a worthwhile solution. This page shows you How to File for North Dakota Bankruptcy.

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

Bankruptcy filings take place in federal court since bankruptcy falls under the umbrella of federal law in all 50 states across the USA. However, state law can still factor in at certain points along the process. For instance, it could decide what assets are protected from forced liquidation.

Once you've determined that you are free to declare chapter 7 bankruptcy, you'll need to talk to a bankruptcy lawyer about the exemptions that you will have a right to claim. Though the attorney will have the experience necessary to come up with a winning strategy, here are a just a few of the allowable exemptions in North Dakota:http://research.lawyers.com/North-Dakota/Bankruptcy-in-North-Dakota.html

1. All family pictures
2. Homestead or mobile home to $100,000
3. Crops and grain raised on up to 160 acres of land
4. Provisions and fuel for one year
5. Tools of trade or professional library to $1,500
6. All clothing to $5,000
7. Household and kitchen furniture to $1,000
8. Qualified pension plan to $100,000 per account or $200,000 total
9. Workers' compensation
10. Lot or lots in any burial ground

Chapter 7 bankruptcy is a legal process in the United States designed to liberate an individual facing mounting financial pressure from their unsecured creditors. However, Chapter 7 will not wipe out debt backed by collateral like mortgages or car payments. This type of bankruptcy is sometimes called a liquidation or straight bankruptcy. Some people become very apprehensive at the thought of filing for chapter 7 due to stories of forced asset liquidation, but forced sales can in many cases be avoided if you are able to pass the means test discussed in Step 2. Regardless of whether or not a Chapter 7 bankruptcy works for you, don't forget to consider filling a Chapter 13 restructuring instead as it may still be able to help.

In order to pass the Chapter 7 Bankruptcy means test and be eligible to declare Chapter 7 bankruptcy, you'll need to show that your annual income is less than the state median in North Dakota. This figure is released by the Census Bureau, but varies depending on the size of your family. The following maximum incomes apply in cases filed after March 15, 2009http://research.lawyers.com/North-Dakota/Bankruptcy-in-North-Dakota.html:

1. Single individual: $38,226
2. Two person family: $53,389
3. Three person family: $67,644
4. Four person family: $71,751
5. Five+ person family: $71,751 plus $6,900 for each extra individual over four