Maryland Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Maryland's Statutes Of Limitations. Maryland phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Maryland Fair Debt Collection Consumer Practices Guide summarizes Maryland's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Maryland Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Maryland’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Maryland Debt Exemption Law!
Maryland Statute
Maryland has opted out of federal bankruptcy exemptions. Maryland
Code Annotated, Courts & Judicial Procedure § 11-504.
Wages: Maryland Code Annotated, Commercial Law § 15-601.1.
Homestead: Maryland Code Annotated Courts & Judicial Procedure §§ 11-504 and -507.
Tangible personal property: Maryland Code Annotated, Courts & Judicial Procedure, § 11-504.
Benefits, retirement plans, insurance, judgments, and other intangibles: Maryland Code Annotated, Courts & Judicial Procedure § 11·504.
Maryland Debt Statutes of Limitation
Your debt may have expired under Maryland’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Maryland Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Maryland Debt Statutes of Limitation
Civil action: 3 years from the date it accrues, unless:
Breach of contract under any sale of goods and services under the UCC: 4 years after the cause of action, even if the aggrieved party is unaware of the breach.
Promissory notes or instruments under seal, bonds, judgments, recognizance, contracts under seal, or other specialties: 12 years.
Financing statement: 12 years, unless a continuation statement is filed by a secured party six (6) months prior to end of twelve (12) year period. (Maryland, Commercial Law article Sec. 2-725; Courts & Judicial Proceedings Article Sec. 5-101-02, 9-403).
NOTE: The 3 year statute of limitations begins again if creditors can document that a debtor has reaffirmed a debt by a good faith basis by a written agreement, orally, or by payment.
Maryland Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Maryland’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Maryland law.
Maryland Procedural Requirements
A judgment creditor may obtain discovery to aid enforcement of a money judgment by use of depositions, interrogatories, and requests for documents. On request of a judgment creditor, filed no earlier than 30 days after entry of a money judgment, the court where the judgment was entered or recorded may issue an order requiring the appearance for examination under oath before a judge or examiner of any person if the court is satisfied by affidavit or other proof that it is probable that the person has property of the judgment debtor, is indebted for a sum certain to the judgment debtor, or has knowledge of any concealment, fraudulent transfer, or withholding of any assets belonging to the judgment debtor. The order shall specify when, where, and before whom the examination will be held and that failure to appear may result in the person served being held in contempt. The order shall be served in the manner provided by Rule 2121. Maryland. R. 2633 [1].
The judgment creditor may obtain an issuance of a writ of garnishment by filing in the same action in which the judgment was entered a request that contains (1) the caption of the action, (2) the amount owed under the judgment, (3) the name and last known address of the judgment debtor, and (4) the name and address of the garnishee.
Upon the filing, the clerk shall issue a writ of garnishment directed to the garnishee. The writ of garnishment shall: contain the information in the request, the name and address of the person requesting the writ, and the date of issue, direct the garnishee to hold the property of the judgment debtor subject to further proceedings, notify the garnishee of the time within which the answer must be filed and that failure to do so may result in judgment by default against the garnishee, notify the judgment debtor and garnishee that federal and Statutee exemptions may be available, notify the judgment debtor of the right to contest the garnishment by filing a motion asserting a defense or objection.
The writ shall be served on the garnishee in the manner provided by Chapter 100 for service of process to obtain personal jurisdiction and may be served in or outside the county. Promptly after service upon the garnishee, the person making service shall mail a copy of the writ to the judgment debtor's last known address. The judgment creditor may serve interrogatories directed to the garnishee pursuant to Rule 2421.
The interrogatories shall contain a notice that, unless answers are served within 30 days after service of the interrogatories or within the time for filing an answer to the writ, whichever is later, the garnishee may be held in contempt of court. The interrogatories shall also inform the garnishee that the garnishee must file a notice with the court pursuant to Rule 2401(c) at the time the answers are served. Maryland. R. 2645. Service of process may be made by delivery to the person or by mailing to the person by certified mail requesting: "Restricted Delivery show to whom, date, address of delivery." Maryland. R. 2121.
Service of process may be made by a sheriff or, by a competent private person, 18 years of age or older, including an attorney of record, but not a part to the action. Maryland. R. 2123. Note: A garnishment against property held in bank, trust company, savings bank or savings and loan by husband and wife jointly is not valid unless both are judgment debtors, and garnishment against such property held by one party in trust for another is not valid unless both are judgment debtors. Maryland. Code Ann., Courts _ 11603.
Interest Rate at which Judgments Accrue Judgments and decrees generally bear interest at 10% from rendition. Money judgments for loan debt not secured by realty may carry contract rate until originally scheduled maturity date. Maryland. Code Ann., Courts __ 11106, 11107, 11301. (These are circuit court rules only, but district court rules are nearly identical.)
Maryland (Debt Collector) Call Recording Law
Under Maryland State and Federal Call Recording Laws, you could record the actual recorded conversation with a debt collector in your efforts to stop debt collectors from calling! Illinois is a two party consent state, meaning you need the permission of all parties that are on the call to record the conversation. Thus you DO need a debt collector’s permission before you can record your phone conversation with him (or her) in the state of Maryland.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
