The Statute of Limitations on Debt Collection in Maryland

The statute of limitations for debt collection in Maryland gives creditors a finite window of time to file formal legal action against you to obtain payment. Once the statute of limitations expires, creditors may only continue informal collection practices in accordance with the Fair Debt Collection Practices Act and Maryland Commercial Law. Informal collection practices may include contacting you by phone, through the mail or via email.

Civil Actions

In Maryland, creditors retain the right to sue you in civil court to collect payment for written contracts, including credit cards, for a maximum of three years from the date the account was written off as a bad debt. This means you may use the statute of limitations as a defense in court if your creditor waits until after the three year statute of limitations expires to file a civil suit to collect your debt. This statute of limitations only covers a creditor's right to sue you. A creditor may continue to report your delinquency to credit bureaus and continue contacting you regarding the debt even after the statute of limitations on civil actions has passed.

Reaffirming Debt

If you reaffirm your debt by making a payment or answering any communication from your debtor including phone calls, emails or written notices the clock on the three-year statute of limitations for debt collection starts over. If you do not have the intention of paying off your debt in-full, it's not a smart financial move to continue reaffirming your debt. All this does is give your creditor more time to consider legal action against you.

Collecting a Judgment

Once a creditor obtains a judgment against you to collect a debt, the creditor has 12 years to recoup the total amount owed. A civil judgment allows a creditor to garnish your wages up to 25 percent of your weekly earnings, attach your bank accounts and place liens on your property including homes and automobiles. You have the right to petition the Maryland court within 30 days of a creditor's attachment of your assets to file for an exemption. According to Maryland law firm Laura Margulies & Associates, as of March 2011, you may exempt up to $11,000 of value in real property from creditor attachment. You may also exempt personal possessions including household furnishings up to $1,000.

Credit Reporting Limitations

A collection agency may report your delinquent credit accounts to all major credit reporting bureaus for up to seven years from the date the charge-off occurred. Once this seven year period expires the notation on your credit report must be removed. The reaffirmation rules for debt collection apply to credit reporting as well, meaning if you contact your collection agency the clock on the statute of limitations for credit reporting begins again. This could keep the charge-off notation on your credit report indefinitely if you continue intermittent contact with your creditor or collection agency.