Maine Debt Collection Laws: Time Limits, Garnishment and Your Rights
Maine debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Maine
- Time limit to sue on a written contract
- 6 years for most civil actions, including suits on written or oral contracts. 20 years only for contracts under seal or promissory notes signed in front of an attesting witness. 14 M.R.S. § 752; 14 M.R.S. § 751
- Wage garnishment limit
- Stricter than federal law. Wages can be garnished only after a court disclosure process (missed installment payments or failure to appear). 14 M.R.S. § 3126-A(2)-(3); 14 M.R.S. § 3127-B
- Money protected in a bank account
- Up to $3,550 in cash or bank and other financial accounts is exempt (statute text says $3,000; adjusted for inflation by the Supreme Judicial Court effective October 24, 2024). 14 M.R.S. § 4422(17); SJC Administrative Order JB-24-02
- Answering a debt lawsuit
- In a civil action, serve your answer within 20 days after you are served with the summons and complaint. In small claims court, no written answer is required, but you must appear at the hearing or you will likely lose by default. M.R. Civ. P. 12(a); M.R.S.C.P. 3(b)
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for most civil actions, including suits on written or oral contracts. 20 years only for contracts under seal or promissory notes signed in front of an attesting witness. § 751: https://legislature.maine.gov/statutes/14/title14sec751.html Source: 14 M.R.S. § 752; 14 M.R.S. § 751 |
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| Time limit for credit cards and open accounts | 6 years, the same general period that applies to written and oral contracts. Source: 14 M.R.S. § 752 |
| Can a payment restart the clock? | For contract debts, an acknowledgment or new promise extends the time to sue only if it is express, in writing, and signed by the person who owes the debt. An acknowledgment by one co-signer does not affect the others. Whether a partial payment alone restarts the period is not addressed by § 860 and depends on case law. Source: 14 M.R.S. § 860 |
| How long a judgment lasts | A judgment is presumed paid and satisfied 20 years after the obligation under it accrued (child support orders excepted). Source: 14 M.R.S. § 864 |
If you are sued
| Answering a debt lawsuit | In a civil action, serve your answer within 20 days after you are served with the summons and complaint. In small claims court, no written answer is required, but you must appear at the hearing or you will likely lose by default. Small claims help: https://www.courts.maine.gov/help/small-claims/index.html |
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Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law. Wages can be garnished only after a court disclosure process (missed installment payments or failure to appear). The weekly amount taken may not exceed the least of: 25% of disposable earnings plus exempt income; the amount by which that total exceeds 40 times the federal or Maine minimum hourly wage, whichever is higher; or total disposable earnings. The court may not order payments from someone whose only income is exempt (such as Social Security or unemployment). An employer may not fire a worker because of a garnishment order. § 3127-B: https://legislature.maine.gov/statutes/14/title14sec3127-B.html. A debt collector may not garnish wages for medical debt (32 M.R.S. § 11013(13)). |
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| Money protected in a bank account | Up to $3,550 in cash or bank and other financial accounts is exempt (statute text says $3,000; adjusted for inflation by the Supreme Judicial Court effective October 24, 2024). An account owner may file an ex parte motion in the court that entered the judgment for a hearing on how the exemption applies. Statute: https://legislature.maine.gov/statutes/14/title14sec4422.html. Exemption amounts are adjusted by the Northeast CPI every 3 years. |
| Homestead exemption | $94,300 in a residence the debtor or a dependent lives in; $188,550 if minor dependents live with the debtor, or if the debtor or a dependent is 60 or older or disabled and unable to work. Joint owners are capped by their fractional share. A debtor's principal residence is fully exempt from attachment and execution for medical debt. Statutory amounts before the 2024 inflation adjustment were $80,000 / $160,000 (joint-owner multiplier $240,000, adjusted to $282,800). Statute: https://legislature.maine.gov/statutes/14/title14sec4422.html. The exemption does not apply to judgments for torts beyond ordinary negligence. |
| Vehicle exemption | $11,800 in one motor vehicle (statute text says $10,000; adjusted for inflation effective October 24, 2024). Statute: https://legislature.maine.gov/statutes/14/title14sec4422.html |
| Claiming an exemption | Exemptions are raised in the District Court disclosure process, where the judge reviews the debtor's income and property before ordering payments. After an employer answers a wage withholding order, the debtor may file a motion for a hearing within 20 days of service of the employer's answer. For a bank account, the account owner may file an ex parte motion for dissolution or modification in the court that entered the judgment. Court brochure on disclosure hearings: https://www.courts.maine.gov/help/guides/collecting-money-judgment.pdf |
| Bankruptcy exemptions | Maine is an opt-out state: debtors in bankruptcy must use Maine's exemptions (plus non-bankruptcy federal exemptions), not the federal bankruptcy exemption list. Source: 14 M.R.S. § 4426 |
Debt collectors and interest
| State debt collection law | Yes. The Maine Fair Debt Collection Practices Act regulates debt collectors, including collection agencies, debt buyers, repossession companies, and creditors that collect their own debts under a different name. It largely mirrors the federal FDCPA and adds state rules, such as limits on medical debt collection. Prohibited practices: https://legislature.maine.gov/statutes/32/title32sec11013.html. Original creditors collecting in their own name are generally excluded. |
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| Debt collector licensing | Yes. No one may do business as a debt collector in Maine without a license from the Superintendent of Consumer Credit Protection. Licenses are renewed every two years. Source: 32 M.R.S. § 11031 |
| Medical debt protections | Strong protections. Medical debt may not appear on credit reports, and creditors and collectors may not report it. Debt collectors may not charge interest or fees on medical debt, may not garnish wages or put a lien on the debtor's principal home for it, and must give a 30-day income-screening notice before suing someone whose household income may be at or below 300% of the federal poverty guidelines. Collection is barred against patients who qualify for hospital charity care. The debtor's principal residence is fully exempt from execution for medical debt. Credit reporting ban: https://legislature.maine.gov/statutes/10/title10sec1310-H.html. Several of these rules were added in 2023-2025 (PL 2023 c. 663; PL 2025 c. 488 and c. 649). |
| Interest rate limits | Post-judgment interest is the one-year U.S. Treasury bill rate plus 6% (based on the last full week of the prior year). If the contract sets an interest rate, the judgment bears the contract rate or the T-bill-plus-6% rate, whichever is greater. The court may waive interest for good cause. Debt collectors may not charge interest on medical debt (32 M.R.S. § 11013(3)(O)). Source: 14 M.R.S. § 1602-C |
Debt & Collections FAQ
What is the statute of limitations on debt in Maine?
6 years for most civil actions, including suits on written or oral contracts. 20 years only for contracts under seal or promissory notes signed in front of an attesting witness.
How long can a creditor sue on a credit card debt in Maine?
6 years, the same general period that applies to written and oral contracts.
Does making a payment restart the statute of limitations in Maine?
For contract debts, an acknowledgment or new promise extends the time to sue only if it is express, in writing, and signed by the person who owes the debt. An acknowledgment by one co-signer does not affect the others.
How long does a court judgment last in Maine?
A judgment is presumed paid and satisfied 20 years after the obligation under it accrued (child support orders excepted).
How much of my wages can be garnished in Maine?
Stricter than federal law. Wages can be garnished only after a court disclosure process (missed installment payments or failure to appear). The weekly amount taken may not exceed the least of: 25% of disposable earnings plus exempt income; the amount by which that total exceeds 40 times the federal or Maine minimum hourly wage, whichever is higher; or total disposable earnings. The court may not order payments from someone whose only income is exempt (such as Social Security or unemployment). An employer may not fire a worker because of a garnishment order.
How much money in a bank account is protected from creditors in Maine?
Up to $3,550 in cash or bank and other financial accounts is exempt (statute text says $3,000; adjusted for inflation by the Supreme Judicial Court effective October 24, 2024). An account owner may file an ex parte motion in the court that entered the judgment for a hearing on how the exemption applies.
What is the homestead exemption in Maine?
$94,300 in a residence the debtor or a dependent lives in; $188,550 if minor dependents live with the debtor, or if the debtor or a dependent is 60 or older or disabled and unable to work. Joint owners are capped by their fractional share. A debtor's principal residence is fully exempt from attachment and execution for medical debt.
Can a creditor take my car in Maine?
$11,800 in one motor vehicle (statute text says $10,000; adjusted for inflation effective October 24, 2024).
What debt collection practices are illegal in Maine?
Yes. The Maine Fair Debt Collection Practices Act regulates debt collectors, including collection agencies, debt buyers, repossession companies, and creditors that collect their own debts under a different name. It largely mirrors the federal FDCPA and adds state rules, such as limits on medical debt collection.
Do debt collectors need a license in Maine?
Yes. No one may do business as a debt collector in Maine without a license from the Superintendent of Consumer Credit Protection. Licenses are renewed every two years.
What protections apply to medical debt in Maine?
Strong protections. Medical debt may not appear on credit reports, and creditors and collectors may not report it. Debt collectors may not charge interest or fees on medical debt, may not garnish wages or put a lien on the debtor's principal home for it, and must give a 30-day income-screening notice before suing someone whose household income may be at or below 300% of the federal poverty guidelines. Collection is barred against patients who qualify for hospital charity care. The debtor's principal residence is fully exempt from execution for medical debt.
What is the maximum legal interest rate in Maine?
Post-judgment interest is the one-year U.S. Treasury bill rate plus 6% (based on the last full week of the prior year). If the contract sets an interest rate, the judgment bears the contract rate or the T-bill-plus-6% rate, whichever is greater. The court may waive interest for good cause.
How do I respond to a debt collection lawsuit in Maine?
In a civil action, serve your answer within 20 days after you are served with the summons and complaint. In small claims court, no written answer is required, but you must appear at the hearing or you will likely lose by default.
How do I stop a garnishment or claim an exemption in Maine?
Exemptions are raised in the District Court disclosure process, where the judge reviews the debtor's income and property before ordering payments. After an employer answers a wage withholding order, the debtor may file a motion for a hearing within 20 days of service of the employer's answer. For a bank account, the account owner may file an ex parte motion for dissolution or modification in the court that entered the judgment.
Which bankruptcy exemptions can I use in Maine?
Maine is an opt-out state: debtors in bankruptcy must use Maine's exemptions (plus non-bankruptcy federal exemptions), not the federal bankruptcy exemption list.
Debt & Collections in other states
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.