Statute of limitations on unsecured debt in Maryland determine how long debt collectors have to successfully sue you in court for an unpaid debt. Once the statute expires, the debt collector can still try to collect from you--but not in court.
Time Frame
The statute of limitations in Maryland is three years for all unsecured debt except for promissory notes, which have a six-year statute of limitation, according to the credit website BCS Alliance. However the state of Maryland website advises that while the statute of limitations is generally three years, certain language in credit account contracts can extend the statute of limitations to as much as 12 years. The state advises you to consult with an attorney on your specific contract.
Considerations
Statute of limitations in Maryland can be reset in a number of ways. New activity on the account resets the statute of limitation. For example, each time you make a partial payment the statute can be reset to the beginning--giving the debt collector at least three more years to pursue you in court. The statute of limitation can also be extended if you enter into a payment plan, or if you simply contact the creditor to discuss the status of the account.
Misconceptions
A debt in Maryland that is beyond the state's statue of limitations can still be reported on your credit report in some instances. Credit reporting is regulated by the Fair Credit Reporting Act, a federal law that is separate from the Maryland state statue. Old debts can be reported on your credit report for a minimum of seven years, regardless of the statute of imitations.
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