Chapter 7 Bankruptcy in North Dakota: What you need to know

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a process created by the U.S. legislature to help people who are overwhelmed by debt. Congress recognized that debt relief is important not just for the individual or couple who has fallen on hard times, but for society as a whole. Ending the struggle allows the debtor to rebuild and make a positive contribution to the local and national economy.

In a Chapter 7 bankruptcy case, a qualified debtor can usually discharge — or legally eliminate the obligation to pay — most unsecured debt. Unsecured debt includes things like credit card debt, payday loans, medical bills, old utility bills and signature loans. The case begins with the filing of a bankruptcy petition and additional documents called “schedules.” The bankruptcy schedules give the court information about the petitioner’s debts, assets and income.

In most Chapter 7 cases, an automatic stay is entered as soon as the petition is filed. The automatic stay prohibits most creditors from pursuing any collection action against the petitioner while the case is pending. That means:

• no collection calls;
• no threatening letters;
• no handing off a debt to a debt collector or selling it to a debt buyer;
• no lawsuits;
• no wage garnishment;
• no eviction or repossession; and
• no mortgage foreclosure action.

Virtually all collection action stops immediately — even lawsuits that are already underway and foreclosure sales that are already scheduled. Creditors who violate this court order may be punished by the court. In extreme cases, they may even have to pay compensation to the debtor.

Most Chapter 7 bankruptcy petitioners never even go before a judge. Most will attend a single “meeting of creditors,” which often takes less than 15 minutes. If there are no complications, the debtor may receive a Chapter 7 discharge in as little as 4-5 months, wiping out the obligation to pay unsecured debts.

Cost to file chapter 7 in North Dakota

The chapter 7 filing fees in North Dakota are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

North Dakota Bankruptcy Court Locations

The United States Bankruptcy Court, District of North Dakota, has just one location, in Fargo:

Bankruptcy Clerk’s Office
Quentin N. Burdick United States Courthouse
655 First Avenue North, Suite 210
Fargo, ND 58102
Ph: 701-297-7100