Maryland Debt Collection Laws: Time Limits, Garnishment and Your Rights
Maryland 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 Maryland
- Time limit to sue on a written contract
- 3 years for a civil action on a contract, written or oral. 12 years for a contract under seal (a 'specialty'), but the 12-year period does not apply to hospital debt owed by a consumer. Md. Code, Cts. & Jud. Proc. § 5-101; § 5-102
- Wage garnishment limit
- Stricter than federal law. Exempt from garnishment is the greater of 75% of disposable wages or 30 times the Maryland minimum hourly wage times the number of weeks in the pay period, plus any medical insurance payment deducted from pay. Md. Code, Com. Law § 15-601.1
- Money protected in a bank account
- Up to $500 in a deposit account is automatically protected without the debtor having to claim it; it applies separately to each bank and each garnishment. Md. Code, Cts. & Jud. Proc. § 11-504(b)(5)-(6), (c)
- Answering a debt lawsuit
- In District Court, file the Notice of Intention to Defend (on the bottom of the Writ of Summons) within 15 days after you are served, or 60 days if you are out of state. District Court of Maryland, DC-CV-001BR
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 3 years for a civil action on a contract, written or oral. 12 years for a contract under seal (a 'specialty'), but the 12-year period does not apply to hospital debt owed by a consumer. § 5-102: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj§ion=5-102&enactments=false |
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| Time limit for credit cards and open accounts | 3 years, the general period for civil actions, including credit card and open-account debts. |
| Can a payment restart the clock? | For consumer debt, once the limitations period has run out, a payment, a written or oral acknowledgment, or any other activity on the debt does not revive or extend it, and a creditor or collector may not sue on the time-barred debt. A separate written payment agreement made before the period expired can carry its own limitations period. For sealed instruments (specialties), a payment of principal or interest suspends the 12-year period for 3 years (§ 5-102(b)). |
| How long a judgment lasts | A judgment is valid for 12 years. It can be renewed before it expires by filing a Notice to Renew Judgment (form DC-CV-023 in District Court); a renewed judgment lasts another 12 years. § 5-102: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj§ion=5-102&enactments=false |
If you are sued
| Answering a debt lawsuit | In District Court, file the Notice of Intention to Defend (on the bottom of the Writ of Summons) within 15 days after you are served, or 60 days if you are out of state. If you do not and the plaintiff filed an affidavit, the judge may enter an 'affidavit judgment' against you without a trial. Court help on debt cases: https://www.mdcourts.gov/legalhelp/moneyissuesiowe. |
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Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law. Exempt from garnishment is the greater of 75% of disposable wages or 30 times the Maryland minimum hourly wage times the number of weeks in the pay period, plus any medical insurance payment deducted from pay. The amount is calculated per pay period. Uses the state minimum wage, which is higher than the federal minimum. The general exemptions in Cts. & Jud. Proc. § 11-504 do not apply to wage attachments (§ 11-504(e)). Source: Md. Code, Com. Law § 15-601.1 |
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| Money protected in a bank account | Up to $500 in a deposit account is automatically protected without the debtor having to claim it; it applies separately to each bank and each garnishment. In addition, the debtor may elect to exempt up to $6,000 in cash or any property (combined with the $500) by claiming it within 30 days of the levy or attachment. Federal benefits such as Social Security deposited directly are also protected (31 CFR Part 212; Md. Rule 3-645.1), per the District Court brochure DC-CV-060BR. |
| Homestead exemption | No homestead exemption outside bankruptcy. In bankruptcy only, a debtor may exempt an owner-occupied home up to the federal homestead amount in 11 U.S.C. 522(d)(1) (as adjusted for inflation), unless the debtor or a close relative claimed it on the same property within the past 8 years. Hospitals may not seek a lien on, or force the sale of, a patient's primary residence to collect a hospital bill (Health-Gen. § 19-214.2(f)). |
| Vehicle exemption | No separate motor vehicle exemption. A vehicle can be protected only under the general $6,000 cash-or-property exemption the debtor elects within 30 days of the levy. |
| Claiming an exemption | The first $500 in a bank account is protected automatically. To protect other money or property (up to $6,000), the debtor must elect the exemption within 30 days of the levy or attachment. When property is seized, there is a 30-day waiting period before sale so the debtor can file a motion asking that the property be exempted; exemptions are listed in the Notice to Defendant on the Writ of Execution. The debtor can also challenge a sheriff's appraisal by motion. |
| Bankruptcy exemptions | Maryland is an opt-out state: in bankruptcy a debtor may not use the federal exemptions in 11 U.S.C. 522(d) and must use Maryland's exemptions, which add a $5,000 personal property exemption and a homestead exemption tied to the federal amount for bankruptcy cases. |
Debt collectors and interest
| State debt collection law | Yes. The Maryland Consumer Debt Collection Act applies to any 'collector' collecting a consumer debt, including original creditors. It bars threats of violence or criminal prosecution, contacting an employer before final judgment, harassment, claiming rights that do not exist, unlicensed collection, and any conduct that violates sections 804-812 of the federal FDCPA. § 14-201 definitions: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl§ion=14-201&enactments=false |
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| Debt collector licensing | Yes. A collection agency must be licensed (through NMLS) to do business in Maryland. Regular employees of a creditor collecting the creditor's own debts are exempt. The Office of Financial Regulation and the State Collection Agency Licensing Board oversee licensing. Source: Md. Code, Bus. Reg. § 7-301 |
| Medical debt protections | Yes, for hospital bills. A hospital may not report a patient to a credit bureau or sue for at least 240 days after the first bill, and had to instruct credit bureaus to delete prior adverse reports by November 1, 2025. Hospitals may not charge interest before a judgment, seek a lien on or force the sale of the patient's primary residence, seek body attachment or arrest, or garnish wages of patients eligible for free or reduced-cost care. The 12-year limitations period for sealed contracts does not apply to hospital debt. A further amended version of § 19-214.2 takes effect June 30, 2028 (Chapter 750 of 2025). |
| Interest rate limits | Judgments bear 10% interest a year (6% for judgments for residential rent). A judgment on a loan of money carries the contract rate until the loan's original maturity date. The general usury limit is 6% simple interest unless another law allows more, and many consumer credit laws do. § 11-106: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?enactments=false&article=gcj§ion=11-106. § 12-102: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?enactments=false&article=gcl§ion=12-102 |
Where to get help in Maryland
- Maryland Office of Financial Regulation (licenses collection agencies; enforces the Maryland Consumer Debt Collection Act)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Maryland?
3 years for a civil action on a contract, written or oral. 12 years for a contract under seal (a 'specialty'), but the 12-year period does not apply to hospital debt owed by a consumer.
How long can a creditor sue on a credit card debt in Maryland?
3 years, the general period for civil actions, including credit card and open-account debts.
Does making a payment restart the statute of limitations in Maryland?
For consumer debt, once the limitations period has run out, a payment, a written or oral acknowledgment, or any other activity on the debt does not revive or extend it, and a creditor or collector may not sue on the time-barred debt. A separate written payment agreement made before the period expired can carry its own limitations period.
How long does a court judgment last in Maryland?
A judgment is valid for 12 years. It can be renewed before it expires by filing a Notice to Renew Judgment (form DC-CV-023 in District Court); a renewed judgment lasts another 12 years.
How much of my wages can be garnished in Maryland?
Stricter than federal law. Exempt from garnishment is the greater of 75% of disposable wages or 30 times the Maryland minimum hourly wage times the number of weeks in the pay period, plus any medical insurance payment deducted from pay. The amount is calculated per pay period.
How much money in a bank account is protected from creditors in Maryland?
Up to $500 in a deposit account is automatically protected without the debtor having to claim it; it applies separately to each bank and each garnishment. In addition, the debtor may elect to exempt up to $6,000 in cash or any property (combined with the $500) by claiming it within 30 days of the levy or attachment.
What is the homestead exemption in Maryland?
No homestead exemption outside bankruptcy. In bankruptcy only, a debtor may exempt an owner-occupied home up to the federal homestead amount in 11 U.S.C. 522(d)(1) (as adjusted for inflation), unless the debtor or a close relative claimed it on the same property within the past 8 years.
Can a creditor take my car in Maryland?
No separate motor vehicle exemption. A vehicle can be protected only under the general $6,000 cash-or-property exemption the debtor elects within 30 days of the levy.
What debt collection practices are illegal in Maryland?
Yes. The Maryland Consumer Debt Collection Act applies to any 'collector' collecting a consumer debt, including original creditors. It bars threats of violence or criminal prosecution, contacting an employer before final judgment, harassment, claiming rights that do not exist, unlicensed collection, and any conduct that violates sections 804-812 of the federal FDCPA.
Do debt collectors need a license in Maryland?
Yes. A collection agency must be licensed (through NMLS) to do business in Maryland. Regular employees of a creditor collecting the creditor's own debts are exempt. The Office of Financial Regulation and the State Collection Agency Licensing Board oversee licensing.
What protections apply to medical debt in Maryland?
Yes, for hospital bills. A hospital may not report a patient to a credit bureau or sue for at least 240 days after the first bill, and had to instruct credit bureaus to delete prior adverse reports by November 1, 2025. Hospitals may not charge interest before a judgment, seek a lien on or force the sale of the patient's primary residence, seek body attachment or arrest, or garnish wages of patients eligible for free or reduced-cost care. The 12-year limitations period for sealed contracts does not apply to hospital debt.
What is the maximum legal interest rate in Maryland?
Judgments bear 10% interest a year (6% for judgments for residential rent). A judgment on a loan of money carries the contract rate until the loan's original maturity date. The general usury limit is 6% simple interest unless another law allows more, and many consumer credit laws do.
How do I respond to a debt collection lawsuit in Maryland?
In District Court, file the Notice of Intention to Defend (on the bottom of the Writ of Summons) within 15 days after you are served, or 60 days if you are out of state. If you do not and the plaintiff filed an affidavit, the judge may enter an 'affidavit judgment' against you without a trial.
How do I stop a garnishment or claim an exemption in Maryland?
The first $500 in a bank account is protected automatically. To protect other money or property (up to $6,000), the debtor must elect the exemption within 30 days of the levy or attachment. When property is seized, there is a 30-day waiting period before sale so the debtor can file a motion asking that the property be exempted; exemptions are listed in the Notice to Defendant on the Writ of Execution. The debtor can also challenge a sheriff's appraisal by motion.
Which bankruptcy exemptions can I use in Maryland?
Maryland is an opt-out state: in bankruptcy a debtor may not use the federal exemptions in 11 U.S.C. 522(d) and must use Maryland's exemptions, which add a $5,000 personal property exemption and a homestead exemption tied to the federal amount for bankruptcy cases.
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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.