Maryland debt: three years, then no lawsuit and no restarting the clock
Maryland has one of the shortest time limits for debt, three years, and since 2016 it is final: after it runs, a creditor cannot sue, and paying something or admitting the debt does not bring it back. Maryland's courts have also held debt buyers to its licensing law.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Maryland at a glance
- Most consumer debt
- 3 years (CJP 5-101)
- After the limit
- No lawsuit (5-1202(a))
- Payment after the limit
- Does not revive (5-1202(b))
- State collection law
- Consumer Debt Collection Act
- Debt buyers
- License required (Finch, 2019)
- Wages exempt (state law)
- Greater of $145/week or 75%
General information about Maryland law, with sources below. Not legal advice.
Three years, then a hard stop
Three years for a civil action on most consumer debts, including credit cards and medical bills (Courts and Judicial Proceedings 5-101).
A creditor or collector may not start a consumer debt collection action after the time limit has expired (Courts and Judicial Proceedings 5-1202(a)). Any payment, written or spoken affirmation, or other activity on the debt after the time limit has expired does not revive or extend it (5-1202(b)). Maryland added these rules in 2016; before that, a small payment could restart the three years.
So in Maryland, a small "good faith" payment on an old account does not give the collector a new right to sue.
Debt buyers and Maryland's licensing law
In LVNV Funding v. Finch (2019), Maryland's highest court held that even a debt buyer that does not collect directly needed a Maryland collection agency license. See our LVNV Funding page for what the court decided about judgments already entered.
The Maryland Consumer Debt Collection Act (Commercial Law 14-201 and following) adds its own protections, including a ban on collecting amounts not allowed by the agreement or by law, and a private right to sue. The federal dispute right applies too: a written dispute inside the validation period makes the collector stop until it mails verification.
Our guide to time-barred and zombie debt explains what collectors may and may not do once the 3-year limit in Maryland has passed.
Limits vary a lot between states: by comparison, Nebraska sets 4 years and Rhode Island sets 10 years for similar debts.
Not sure a Maryland collector is genuine? Check our guide to fake debt collectors, then ask for validation in writing.
If your letter comes from a national company such as IC System or Jefferson Capital Systems, our collector guides explain who they are and how to dispute.
A Maryland summons has a short deadline. Our debt lawsuit guide covers answering it, defenses such as the time limit, and settling.
Wage garnishment in Maryland
Maryland's own garnishment law exempts the greater of $145 a week or 75% of disposable wages. That figure has not kept pace with federal protection, which also applies in Maryland, so in practice the federal floor usually decides how much of a low paycheck is safe.
Already facing a garnishment in Maryland? Our wage garnishment guide covers exemption claims, hardship and how long a garnishment lasts.
Questions people ask about debt in Maryland
What is the statute of limitations on credit card debt in Maryland?
Three years under Courts and Judicial Proceedings 5-101.
Can a payment restart an old debt in Maryland?
Not once the three years have passed. Since 2016, section 5-1202(b) says a later payment or acknowledgment does not revive or extend the limit.
Can a creditor sue me on a time-barred debt in Maryland?
No. Section 5-1202(a) bars starting a consumer debt collection action after the time limit has expired.
Do debt buyers need a license in Maryland?
Yes. In LVNV Funding v. Finch (2019), Maryland's highest court held that even a passive debt buyer needed a collection agency license.
How much of my wages can be garnished in Maryland?
Maryland exempts the greater of $145 a week or 75% of disposable wages, and federal limits also apply. Whichever protects more of your pay controls.