Start My Answer

How to Settle a Debt in North Dakota

Sarah Edwards | March 08, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

When you reach a debt settlement agreement in North Dakota ^^

Summary: If you’re facing a debt lawsuit in North Dakota, you can settle the debt at any stage of the lawsuit process. Just be sure to file your Answer to the lawsuit within 21 days, then use SoloSettle to send a settlement offer and get the agreement in writing.

You work hard to maintain your standard of living and repay the debts you owe. However, it’s easy to get too caught up in your debts — so caught up that you can’t afford to repay them. When that happens, creditors take action.

After a consumer stops paying an obligation, creditors will start calling and sending letters. If the debtor doesn’t get back on track with their payments, the creditor may sell the account to a debt collection agency or file a debt lawsuit against you.

If your creditor decides to pursue a debt lawsuit against you, a court may award them a judgment. A judgment will allow the creditor to take more intrusive actions against you, which might include garnishing your wages or freezing your bank account.

You don’t want a judgment, so it’s best to resolve your case before it goes to court. You can do so by repaying or settling the debt with your creditors.

There are 3 steps to debt settlement in North Dakota

If you’re seeking to settle your debt in North Dakota, there are three steps you’ll need to take:

  1. Respond to the debt lawsuit with an Answer.
  2. Make a settlement offer to start negotiations.
  3. Get the agreement in writing.

Below, we explore each of these steps in detail. Don’t like reading? Check out this video instead:

1. Respond to the debt lawsuit with an Answer

Your creditor will begin the lawsuit process by filing a Complaint against you. A Complaint lists the reasons for the lawsuit, which includes nonpayment of a debt. It also details how much you owe and any interest or fees.

You have 21 days to respond in North Dakota. If you don’t respond in time, you will lost by default judgment. This may give your creditor or debt collectors the right to garnish your wages and seize your property.

Many people don’t realize that they give up the right to defend themselves when they don’t file an Answer. An Answer is your legal response to the lawsuit. You’ll list your responses to each claim against you and explain your affirmative defenses in your Answer document.

Some typical defenses are improper validation of the debt or lack of the court’s jurisdiction over the lawsuit. However, if neither of those fit your case, you can consider other defenses.

You may wonder why you need to file an Answer if you plan to settle your case before your court date. Filing an Answer protects you in case your efforts at settlement fail. It also acts as a safeguard in case your creditor doesn’t report the settlement to the court.

Respond to your debt lawsuit online with SoloSuit.

2. Make an offer to start negotiations

Next, you’ll need to determine how much you can afford to offer your creditors in a settlement. Take a close look at your finances, and evaluate how much money you have available.

We recommend that you begin the negotiations with a minimum of 60% of the total value of your debt. That amount is large enough for your creditors to consider whether accepting a lump sum payment from you is better than going through the hassle and cost of a lawsuit.

If you can’t afford 60% in a debt settlement, offer what you can and explain your financial situation. Sometimes creditors will be more tolerant if they understand where you’re coming from.

You may go through several rounds of negotiations before reaching an agreement. Don’t make any deal you know you can’t afford. If you agree and fail to live up to the terms, your creditor will continue with the lawsuit, and you’ll likely end up with a judgment.

SoloSettle takes care of the negotiation process for you.

3. Get the agreement in writing

Your next step is to record the agreement in writing with your creditor. A written contract ensures there is no misunderstanding between you and your debt collector concerning the terms of the deal.

Your agreement should list the amount you’ll repay, when it’s due, and where you’ll send the money. It should also stipulate that your creditor waives the right to the remaining obligation and cannot pursue further collections against you.

Generally, creditors and debt collectors will draft the agreement document, so just be sure to review it carefully before signing.

We also recommend you include space for a notary to witness the agreement for you and your creditor. Notarizing the agreement adds further legal credibility to the deal.

SoloSettle manages your debt settlement agreement for you.

Here is a debt settlement agreement example to give you an idea of what yours should include.

Now, let’s review an example of how to settle a debt in North Dakota using these three steps.

Example: Roger receives a Summons and Complaint from Midland Credit Management in North Dakota. Roger had a credit card with Chase Bank and stopped making payments. He owes $3,000. Chase sold the account to Midland Credit Management who is now suing Roger. Unfortunately, he doesn’t have $3,000 to repay Midland. He decides to try settling the debt. First, Roger files an Answer before the deadline, which is 21 days in North Dakota. He claims insufficient validation of the debt. After filing his Answer with the court, he uses SoloSettle to contact the company and negotiate a settlement. Roger offers 60% of the debt’s value, or $1,800. Midland Credit Management considers his offer and decides to accept it. After signing and notarizing a settlement agreement, Roger sends the money via SoloSEttle. Midland drops the lawsuit against Roger and reports the account settled to the credit reporting bureaus.

What are North Dakota’s debt collection and debt settlement laws?

North Dakota recognizes the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, debt collectors cannot take specific actions, including:

  • Misrepresenting who they are when contacting a debtor.
  • Telling the consumer they’ll go to jail if they don’t pay a debt.
  • Calling the debtor repeatedly on the same day concerning an obligation.
  • Contacting the consumer before 8 a.m. or after 9 a.m.
  • Using obscene or threatening language when calling a debt collector.
  • Sending the debtor letters using a legal process template.

North Dakota has a statute of limitations on the collection of debt. Under ND §28-01-16, written and oral contracts have a statute of limitations of six years. Similarly, collections of debt on account are limited to six years.

Finally, the Federal Trade Commission has recently amended the Telemarketing Sales Rule to expand debt settlement regulations to all debt relief organizations and companies. All 50 states, including North Dakota, are governed by this Rule as it relates to debt settlement practice.

Under the new Rule, any company that provides debt relief services, namely debt settlement companies, cannot:

  • Charge upfront fees. Debt settlement companies cannot collect any fees from a consumer before the debt has been effectively settled or otherwise resolved.
  • Fail to disclose certain information about its services before a consumer enrolls in the program. This includes how much the service costs, how long it takes to see results, how much money must be saved before a settlement offer is made, consequences that may occur if the consumer fails to make payments on time, customer’s rights, and other important terms.
  • Misrepresent their services. No false or unsubstantiated claims can be made regarding a debt settlement company’s services.

What’s the best debt settlement company?

Some organizations can assist you if you’d like help with the debt settlement process in North Dakota. Let’s explore a few in this section.

SoloSettle isn’t like most debt settlement companies. As a tech-based approach to debt settlement, SoloSettle assists consumers in negotiating a settlement in advance of a debt lawsuit. Our software sends settlement offers directly to your creditors or debt collectors until you make a fair deal.

Once you reach an agreement you approve of, SoloSettle helps manage your contract and facilitate your payment with the creditor or debt collection agency.

Settle with SoloSettle

Make an Offer

Below are other options for trustworthy debt settlement assistance.

  • Pacific Debt Relief: Offers programs that last between one and four years. The company operates in 32 states, and you’ll need at least $7,500 in unsecured debt to qualify for their program. The cost for their services ranges from 15 to 25% of the total value of your debt.
  • Freedom Debt Relief: One of the oldest debt settlement companies. Since 2002, the organization has helped thousands of people resolve over $10 billion in debt. Those signing up for a program can expect to make monthly payments to settle their obligations. Most people complete the program within two to four years. Fees range from 15% to 25% of the total value of debt.
  • Accredited Debt Relief: A debt settlement company that helps individuals resolve unsecured debts. Like Freedom Debt Relief, those who sign up for the program will complete it within two to four years and pay fees ranging between 15% and 25%.

What are the best ways to contact a creditor?

If you’re ready to start the debt settlement process with your creditor, you can call, email, or send them a letter.

We recommend emailing since it gives you a written record of the conversation with your creditor. You’ll also have a chance to consider your creditor’s offer rather than being put on the spot.

However, if you’d prefer to speak directly with your creditor, you can call them. Calling is appropriate if you have extraordinary financial circumstances you want to explain or if you need to resolve the debt issue immediately.

Under N.D. Cent. Code § 12.1-15-02, one party must consent to record a call. The person giving consent is you. You don’t need the permission of your debt collector.

FAQs about how to settle a debt in North Dakota

People usually have many questions when considering settling a debt in North Dakota. Here are the most common inquiries.

Q. What percentage of debt should you offer to settle?

We recommend offering 60% of the total value of your debt to your creditor in a settlement. However, if you cannot come up with that much, offer what you can. Your creditor will let you know whether they’re willing to consider your settlement or if they have another idea in mind.

Q. Can I do my own debt settlement?

Yes, it is possible to do your own debt settlement. However, you’ll need to prepare by learning about the process. Once you figure out how much you can pay in a debt settlement, contact your creditor and begin the negotiation. Make sure to get your agreement in writing before sending any money.

Q. How can a debt be collected in North Dakota?

Debt collectors will call and write you before they take up other collection activities. If you don’t respond to their notices, they may start a debt lawsuit against you. If they win the case, they’ll obtain a judgment allowing them to garnish your wages or freeze your bank account.

How to get debt relief in North Dakota

SoloSuit has several guides you can read concerning debt collection in North Dakota. Here are a few of them:

Debt settlement is possible if you take the proper steps.

Now that you know how debt settlement works, you can try it yourself. Simply figure out how much you can afford to pay in a settlement and contact your creditor to make a deal. Once you have an agreement, get it in writing before transferring your money.

Want more help with debt settlement? SoloSuit has solutions.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

We have answers

Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.

Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.

Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started