Maryland Debt Collection Laws 2026: A short 3-year SoL — and a payment can't revive it

Maryland pairs one of the shortest Statutes of Limitations in the country — just three years on credit cards, medical bills, and open accounts — with a powerful statutory rule that most states lack: once a consumer debt is time-barred, making a payment or even acknowledging the debt does NOT restart the clock. Together these make Maryland one of the strongest states in the nation for dealing with old consumer debt.

Statute of Limitations by debt type in Maryland

Critical: the clock starts on the date of last payment or first missed payment depending on contract terms. Always verify the exact date of last payment before making assumptions about SoL status — getting this wrong can mean losing your defense.

The 3-year SoL plus Maryland's no-revival rule (§ 5-1202)

Maryland gives consumers two protections that, combined, are unusual in the United States.

First, the short window. Under Md. Code, Courts & Judicial Proceedings § 5-101, the general Statute of Limitations on a civil action — including credit card debt, medical debt, personal loans, and other open accounts — is three years from the date the debt became due (typically your last payment or the charge-off). The main exception is debt for the sale of goods, which carries a four-year UCC limit, and certain sealed instruments, which run longer. Three years is among the shortest credit-card SoLs in the country, shared by only about a dozen states. If a Maryland collector sues you on a debt whose last activity is more than three years old, the statute of limitations is a complete defense — but you must raise it yourself in your answer; the court will not dismiss the case on its own.

Second — and this is what sets Maryland apart — a time-barred debt stays dead. Under § 5-1202, once the three-year period has run on a consumer debt, the right to sue is permanently extinguished, and a later payment or a written acknowledgment does NOT revive it or restart the clock. In most states, a single partial payment on an old debt resets the entire SoL and re-exposes you to years of lawsuit risk. In Maryland that trap does not exist for consumer debt: a collector cannot resurrect a time-barred claim by talking you into a "good faith" payment. This makes Maryland one of the safer states in which to negotiate a very old debt — though you should still confirm the debt's age first, because the protection only applies after the three years have fully run.

Practical takeaway: in Maryland the single most valuable fact is the date of last payment. If it is more than three years ago, you hold a complete, non-revivable defense. Request debt validation in writing, and do not let a collector pressure you into a payment on what you believe is a time-barred account.

Maryland wage garnishment and the § 11-504 exemptions

Maryland allows wage garnishment only after a creditor wins a judgment. The cap follows the federal structure: a creditor may take the lesser of 25% of your disposable wages or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. In a few counties (Caroline, Kent, Queen Anne's, and Worcester), a different formula tied to the state minimum wage applies, so the protected amount can be higher there.

Beyond wages, Maryland's exemptions under Md. Code, Cts. & Jud. Proc. § 11-504 let you protect, after a judgment: up to $6,000 in cash, a bank account, or property of any kind; an additional $1,000 in household goods, furnishings, and clothing; and an additional $5,000 "wildcard" in real or personal property. To keep garnished funds or property you generally must file a motion claiming the exemption within 30 days of the garnishment.

Always-protected income: Social Security, SSI, VA benefits, and other federal benefits remain exempt regardless of state law. Maryland judgments are valid for 12 years and can be renewed, so a judgment is worth avoiding — which again points back to raising the 3-year statute of limitations early, before a default judgment is entered.

How to respond if sued in Maryland (6 steps)

Maryland courts will NOT automatically dismiss time-barred lawsuits. You must affirmatively raise the Statute of Limitations defense in your written Answer or it is waived.

Finding legal help in Maryland

Many Maryland consumer protection attorneys take debt defense cases on contingency or no-upfront-fee basis. They earn fees by winning damages against collectors or by saving you the judgment amount. Free initial consultations are common.

Frequently asked questions

What is the Statute of Limitations on debt in Maryland?

In Maryland, the SoL on most consumer debt depends on the type. Written contracts (credit cards with a signed agreement, promissory notes) have a 3-year SoL. Open accounts and oral contracts have a 3-year SoL. Medical debt: 3 years. Court judgments: 12 years. Legal source: Md. Code, Cts. & Jud. Proc. § 5-101 (3-year SoL). The clock starts on the date of last payment or default.

How long can creditors sue me for credit card debt in Maryland?

It depends on classification. If the collector can produce the original signed cardholder agreement, the 3-year written contract SoL applies. If they cannot — common for debts sold to debt buyers — the debt may be classified as an open account with a 3-year SoL. This means document discovery (demanding the signed agreement) is the most important defense strategy. Maryland courts have generally held that the burden is on the plaintiff to prove which SoL applies.

What restarts the Statute of Limitations in Maryland?

In Maryland, the SoL can be restarted by: (1) making any payment on the debt, even one dollar; (2) written acknowledgment of the debt signed by the debtor; (3) written promise to pay; (4) new charges on an open account. Maryland is a no-revival state: under Md. Code, Cts. & Jud. Proc. § 5-1202, once a consumer debt is time-barred, a payment or written acknowledgment does NOT restart the 3-year SoL. CRITICAL: never make a payment or sign anything related to old debt without first verifying the date of last payment and consulting a consumer attorney. A single dollar can give the collector another 3 years to sue.

Can Maryland creditors garnish my wages for credit card debt?

Yes, with limits set by state law.

What is the MCDCA and how does it protect me?

The Maryland Consumer Debt Collection Act (MCDCA) and Maryland Consumer Protection Act (MCPA) provides Maryland-specific consumer protections that work alongside federal FDCPA. Legal source: Md. Code, Cts. & Jud. Proc. § 5-101 (3-year SoL); § 5-102 (12-year judgment); § 5-1202 (no revival of time-barred consumer debt); Md. Code, Com. Law § 14-201 et seq. (MCDCA). Successful claims under these statutes typically include actual damages, statutory damages or multipliers, and attorney fees — making it economically viable for consumer attorneys to take cases on contingency. Violations include filing on time-barred debt, misrepresenting debt status, threatening unlawful actions, and harassment.

How do I respond if I am sued for old debt in Maryland?

You have the deadline on your summons — most Maryland consumer-debt cases are filed in District Court, where you file a Notice of Intention to Defend (check the exact date on your papers; do not rely on a generic number) from being served to file an Answer. Maryland courts will NOT automatically dismiss time-barred lawsuits — you must affirmatively raise the SoL as an affirmative defense in your written response. State specifically: "Plaintiff's claim is barred by the Statute of Limitations under Md. Code, Cts. & Jud. Proc. § 5-101 (3-year SoL)." Also demand the collector produce: original signed credit agreement (critical for 3 vs 3 year SoL determination), complete payment history, chain of title proving they own the debt, and proof of last payment date.

How long are court judgments enforceable in Maryland?

Maryland court judgments are valid for 12 years and can typically be renewed before expiration. During this time, the creditor can attempt to collect through wage garnishment, bank account levies, property liens (subject to homestead exemption), and other post-judgment remedies. Maryland judgments accrue post-judgment interest at the statutory rate. Critical: respond to ANY debt collection lawsuit within the the deadline on your summons — most Maryland consumer-debt cases are filed in District Court, where you file a Notice of Intention to Defend (check the exact date on your papers; do not rely on a generic number) answer period — a default judgment converts unenforceable time-barred debt into a 12-year collection nightmare.

What is the Maryland medical debt Statute of Limitations?

Medical debt in Maryland is generally subject to the 3-year SoL for written contracts (assuming the hospital can produce signed treatment consent and financial responsibility forms). Many medical debt cases are dismissed when hospitals cannot produce these documents for old accounts. Note: under recent CFPB rule changes (2025), medical debt under $500 cannot appear on credit reports — but this does not change the SoL for collection lawsuits.

Are federal student loans subject to the Maryland Statute of Limitations?

No. Federal student loans (Direct Loans, FFEL Program loans, Perkins Loans) have NO statute of limitations under federal law per the Higher Education Technical Amendments of 1991. They can be collected indefinitely through wage garnishment, tax refund offsets, and Social Security garnishment. Private student loans are subject to Maryland's 3-year written contract SoL. Federal loan rehabilitation, consolidation, or income-driven repayment plans can resolve default status.

What can debt collectors NOT do in Maryland?

Under MCDCA and federal FDCPA, debt collectors in Maryland cannot: (1) Use threats of violence or criminal action; (2) Use obscene or profane language; (3) Misrepresent the amount, character, or legal status of the debt; (4) Threaten action they cannot legally take; (5) Call before 8 AM or after 9 PM local time; (6) Call you at work after you have told them to stop; (7) Falsely claim to be attorneys or law enforcement; (8) Communicate with third parties about your debt (narrow exceptions only). Violations can result in statutory damages, actual damages, and attorney fees.

Should I hire a Maryland consumer protection attorney?

Strongly recommended for debt collection lawsuits, especially given Maryland's consumer protection statutes. Maryland has consumer protection attorneys who specialize in FDCPA and MCDCA litigation, often taking cases on contingency. Resources: Maryland Legal Aid, Maryland People's Law Library, Pro Bono Resource Center of Maryland, Maryland AG Consumer Protection Division, and the National Association of Consumer Advocates (consumeradvocates.org). Many attorneys offer free initial consultations to evaluate your case.

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