North Dakota Laws and Legal Materials

This guide provides an overview of North Dakota’s legal framework for debt management, bankruptcy filing, business formation, and estate planning. The information reflects current North Dakota state laws and federal regulations for the year 2024.

Debt Consolidation & Settlement

There is a significant difference between debt consolidation and debt settlement in North Dakota:

• Debt consolidation combines debts into one affordable monthly payment.
• Debt settlement involves negotiating with creditors to reduce the total outstanding debt.

Consumers should be aware of fraudulent practices in the debt relief industry. Chapter 13-11 of the North Dakota Century Code regulates debt settlement providers to protect consumers from deception.

Statute of Limitations on Debt in North Dakota

• North Dakota Century Code § 28-01-16 provides the statute of limitations on debt collection.
• Written contracts: 6 years from the last activity on the account.

Additional Legal Resources for Consumers

• North Dakota state debt collection laws
• Payday loan regulations in North Dakota
• North Dakota bankruptcy laws

Federal Bankruptcy Laws

Federal bankruptcy laws are codified in Title 11 of the United States Code and apply to individuals and businesses unable to pay their debts. The United States Bankruptcy Court for the District of North Dakota handles cases in North Dakota.

The primary goals of bankruptcy law are to:

1. Provide a fresh financial start to debtors by discharging their debts.
2. Ensure equitable asset distribution among creditors.

Common Bankruptcy Chapters in North Dakota

1. Chapter 7: Liquidation bankruptcy.
2. Chapter 13: Debt adjustment for individuals with regular income.
3. Chapter 11: Reorganization, primarily for businesses.

The Bankruptcy Process in North Dakota typically includes:

1. Filing a petition with the United States Bankruptcy Court for the District of North Dakota
2. Submission of financial statements.
3. Creditor notification by the court.
4. Automatic stay-on collection activities.
5. Asset liquidation or debt reorganization, depending on the chapter filed

For further details, visit:

• Comprehensive detail about the bankruptcy process in North Dakota

North Dakota Attorney General's Office

The North Dakota Attorney General's Office works to protect consumer interests and uphold state law.

For more information, visit their official website.

Company Formation in North Dakota

Starting a business in North Dakota involves complying with various state regulations, typically involving:

1. Registration with the North Dakota Secretary of State
2. Drafting of internal governance documents.
3. Issuance of shares or stocks if applicable

Associated Costs (2024)

• Business name reservation: $10
• Filing Articles of Incorporation:
  • $100 for domestic for-profit corporations.
  • $40 for domestic nonprofit corporations.

Business Licensing Requirements

Although a general statewide business license is not required, specific professional licenses may be necessary depending on the business type and location. For more information, visit:

• North Dakota business licensing information

Company Formation Process

1. Name Choice: Ensure it meets North Dakota’s naming guidelines.
2. Appointment of Registered Agent.
3. File Articles of Incorporation.
4. Draft Bylaws.
5. Appoint Initial Directors.
6. Issue Shares.
7. Annual Report Filing.
8. Tax Registration.

For information on company dissolution, visit:

• More businesses are being created in North Dakota

Company Dissolution

The dissolution of a North Dakota corporation requires board approval and typically shareholder consent. The process involves asset liquidation, debt settlement and distribution of remaining assets to shareholders. Articles of Dissolution must be filed with the Secretary of State.

Additional resources on North Dakota business formation

Wills and Living Trusts in North Dakota

A living trust outlines how an estate is managed before and after the grantor's death. Living trusts in North Dakota are governed by Chapter 59-12 of the North Dakota Century Code.

Trust Formation Costs

• The typical cost of setting up a Revocable Living Trust in North Dakota ranges from $1,000 to $3,000, depending on complexity.

Trusts vs. Wills in North Dakota

• Trusts help avoid probate and may reduce taxes, while wills could lead to asset distribution outside of the trust.
• Holographic wills, per N.D. Cent. Code § 30.1-08-02, are valid if written by the testator.

For more details, visit:

• North Dakota living trusts and estate planning

Will Invalidation in North Dakota

A will may be declared invalid if:

1. It lacks proper execution (e.g., no witnesses).
2. The testator lacks testamentary capacity.
3. Fraud or undue influence is present.
4. Revoked by a subsequent will or destruction.

More Legal Resources for Consumers

• North Dakota State Bar Association
• Dakota Supreme CourtNorth

This document provides an overview of key legal concepts and processes in North Dakota. For specific legal advice, consultation with a licensed attorney is recommended.