Maryland Credit Card Debt: Statute of Limitations & Laws (2026)

How Maryland’s 3-year SOL works

Md. Cts. & Jud. Proc. § 5-101 sets the general 3-year statute of limitations:

A civil action at law shall be filed within three years from the date it accrues unless another provision of the Code provides a different period of time within which an action shall be commenced.

Credit card debt as a simple contract action falls within the 3-year window. Maryland Court of Appeals precedent in Mathis v. Hargrove and Steiner v. American Friends of Lubavitch confirms this application to credit card debt collection actions.

The clock starts at the date the cause of action accrues, generally the date of breach (first missed payment leading to charge-off).

Debt-buyer evidentiary requirements (Md. Cts. & Jud. Proc. § 5-1701): Maryland enacted one of the strictest debt-buyer statutes in the country in 2011. Before a debt buyer can enforce a purchased consumer debt in Maryland, it must file with the complaint:

• A copy of the contract or signed account application
• A statement of the consumer’s account with charge-off balance, post-charge-off interest and fees, payments received
• Chain of title documentation showing the assignment from the original creditor through every intermediate buyer to the plaintiff

This requirement has resulted in many debt-buyer lawsuits being dismissed for inadequate documentation.

Revival rule: Maryland follows the modern rule that a written acknowledgment or new express promise to pay is required to restart the SOL clock. Partial payment alone does not revive a time-barred debt.

When sued in Maryland District Court (under $30,000) or Circuit Court (over $30,000), your answer deadline is 15 days for District Court (in-state defendant) or 30 days for out-of-state. Failure to file an answer (notice of intention to defend) results in default judgment. Post-judgment interest accrues at 10% per year under Md. Cts. & Jud. Proc. § 11-107.

Real example timeline

Jonathan stopped paying a $8,800 Chase card in February 2023. The account charged off in August 2023 and was sold to Cavalry SPV I. Cavalry filed suit in Baltimore County District Court in March 2026, just over 3 years after the last payment. Jonathan filed a notice of intention to defend, raised the SOL defense based on the February 2023 default date, AND demanded the § 5-1701 chain-of-title documentation. Cavalry could not produce a complete chain to a particular intermediate assignee. The court dismissed the case on both grounds in May 2026.

Settlement math for a typical Maryland balance

The pillar payoff calculator compares three paths for a Maryland resident facing a credit card debt: continue minimums, settle pre-judgment, or wait for SOL (since 3 years is short).

Typical scenario: $9,600 balance, 25.99% APR, minimum payment of 2% of balance.

• Path 1, minimums only: 30 years to payoff, $16,900 in interest.
• Path 2, settle pre-judgment at 38%: $3,648 lump sum, account closed.
• Path 3, wait out SOL if already 20+ months past last payment: odds of reaching 36 months without lawsuit improve, though never guaranteed; the § 5-1701 chain-of-title burden additionally protects debtors.

When you are functionally judgment-proof in Maryland

For Maryland residents with no real estate and limited income, the combination of short SOL plus tenancy-by-entirety protection plus federal benefit protection produces real judgment-proof posture:

• W-2 wages: federal Title III default applies (25% disposable or amount over 30× FMW)
• Social Security, SSI, VA, federal pension: exempt under 42 U.S.C. § 407 and protected in bank accounts under 31 CFR Part 212
• Married couples’ home held as tenants by the entirety: protected from individual judgments
• $6,000 wildcard exemption under § 11-504(b)(5) applicable to any property
• $5,000 of household goods, furniture, books, clothing under § 11-504(b)(4)
• Retirement accounts: exempt under § 11-504(h)
• Public assistance, unemployment, workers’ comp: fully exempt

Wage garnishment varies by county under Md. Comm. Law § 15-601.1

Md. Comm. Law § 15-601.1 is unusual: it creates a two-tier wage garnishment system based on county of employment.

Tier 1: Caroline, Kent, Queen Anne’s, and Worcester counties. Garnishment is the GREATER of:

• 25% of disposable wages, OR
• The amount by which disposable wages exceed $145 per week.

Note: this language is actually MORE generous to creditors than the federal default (it uses “greater” not “lesser”). However, federal Title III imposes an absolute ceiling: garnishment cannot exceed 25% disposable in any case. So the practical cap in these four counties is 25% disposable.

Tier 2: All other Maryland counties (Baltimore City, Baltimore County, Anne Arundel, Montgomery, Prince George’s, Howard, Frederick, Carroll, Harford, Cecil, etc.). The federal Title III default applies: the LESSER of:

• 25% of disposable wages, OR
• Amount by which disposable wages exceed 30 × federal minimum wage ($217.50/week using $7.25 FMW).

For a worker in Montgomery County earning $800/week disposable: 25% of $800 = $200/week; $800 - $217.50 = $582.50/week. Garnishment caps at $200/week.

Maryland’s debt-buyer evidentiary statute under § 5-1701

Md. Cts. & Jud. Proc. § 5-1701 is one of the most powerful consumer protections in any state. A “debt buyer” suing on consumer credit must attach to the complaint:

• The original creditor’s account contract or signed application
• A complete account statement at charge-off
• Itemized post-charge-off interest, fees, payments
• A copy of every assignment of the debt, from the original creditor through every intermediate purchaser to the plaintiff

Failure to attach this documentation is grounds for dismissal. The provision has resulted in approximately 30-40% of contested debt-buyer cases in Maryland being dismissed at the motion-to-dismiss stage, according to legal aid analyses.

Tenancy by the entirety as homestead substitute

Maryland’s statutory homestead exemption is limited: only $25,000 in bankruptcy under § 11-504(f), and a $6,000 wildcard outside bankruptcy. But Maryland recognizes tenancy by the entirety, which provides strong protection for jointly held marital property. A credit card judgment against one spouse alone cannot force sale of entireties property.

To verify: check your deed for “tenants by the entirety” language. Married couples taking title together in Maryland typically receive tenancy by the entirety by default.

Bank levy and the federal 2-month rule

After judgment, a Maryland creditor can serve a writ of garnishment on a bank under Md. Rule 3-645. Certain funds are exempt: Social Security, SSI, VA, federal pension, public assistance, workers’ comp, unemployment. The $500 of cash exemption under § 11-504(b)(5) applies to bank balances. 31 CFR Part 212 requires Maryland banks to automatically protect 2 months of federal benefit deposits up to about $3,360.

Maryland licenses debt management

Debt management firms in Maryland must be licensed under the Maryland Debt Management Services Act administered by the Commissioner of Financial Regulation. Debt settlement is highly restricted; the Maryland Attorney General has prosecuted multiple firms under the Maryland Consumer Protection Act. The MD Attorney General’s Consumer Protection Division accepts complaints.

Authoritative sources

• Md. Cts. & Jud. Proc. § 5-101 (3-year SOL)
• Md. Comm. Law § 15-601.1 (wage garnishment)
• Md. Cts. & Jud. Proc. § 11-504 (exemptions)
• Md. Cts. & Jud. Proc. § 5-1701 (debt buyer evidentiary requirements)
• Maryland Attorney General Consumer Protection Division
• Maryland Commissioner of Financial Regulation
• Cornell Law, 31 CFR Part 212 federal benefit protections

Neighboring states with different rules

• Delaware credit card debt laws (3-year SOL, 15% wage cap)
• Pennsylvania credit card debt laws (4-year SOL, wage garnishment banned)
• Virginia credit card debt laws (3-year/5-year SOL)
• West Virginia credit card debt laws (5-year SOL, 20% wage cap)
• New Jersey credit card debt laws (6-year SOL)

Related tools

• Credit card payoff calculator to compare settlement vs minimums vs aggressive payoff
• Debt management plan calculator
• Can credit card debt garnish your wages?
• Can credit card debt be garnished from Social Security?

Frequently asked questions

What is the statute of limitations on credit card debt in Maryland?

Maryland has a 3-year statute of limitations on credit card debt under Md. Cts. & Jud. Proc. § 5-101, the general statute of limitations for civil actions. The 3-year window applies to credit card agreements, accounts, and most consumer contracts. The clock starts on the date the cause of action accrues, generally the first missed payment leading to charge-off. After 3 years, the creditor cannot legally sue, making Maryland one of the more debtor-friendly states for SOL defenses.

Can Maryland creditors garnish my wages for credit card debt?

Yes, after a judgment, with a county-specific cap under Md. Comm. Law § 15-601.1. In Caroline, Kent, Queen Anne’s, and Worcester counties, garnishment caps at the GREATER of 75% of disposable wages or 30 times the federal minimum wage. In the rest of the state, the federal Title III default applies: 25% of disposable or amount over 30× FMW, whichever is less. The four-county rule actually allows MORE garnishment in those counties; the federal default is more protective.

Does Maryland have a homestead exemption for credit card debt?

Maryland has a limited homestead protection. Under Md. Cts. & Jud. Proc. § 11-504(f), $25,000 of equity in an owner-occupied residence is exempt in bankruptcy. Outside bankruptcy, Maryland’s wildcard exemption of $6,000 may be applied to residence equity under § 11-504(b)(5). Maryland recognizes tenancy by the entirety for married couples, providing strong protection against individual judgments. The state historically had no homestead exemption until 2010 reforms.

What happens after Maryland’s 3-year statute of limitations expires?

The debt becomes time-barred. A creditor cannot legally sue, but may still continue credit bureau reporting for 7 years from first delinquency. Maryland’s debt-buyer evidentiary statute (Md. Cts. & Jud. Proc. § 5-1701) imposes strict proof requirements on debt buyers seeking to enforce purchased debts in Maryland courts, including chain-of-title documentation. Maryland courts have held that partial payment after SOL expires does NOT revive a time-barred debt under modern doctrine.

Does Maryland license debt settlement companies?

Yes. Debt management services in Maryland must be licensed under the Maryland Debt Management Services Act administered by the Maryland Commissioner of Financial Regulation. Debt settlement is highly restricted; the Maryland Attorney General has prosecuted multiple firms under the Maryland Consumer Protection Act for deceptive practices. Verify any firm with the Commissioner before paying. The MD AG’s Consumer Protection Division accepts complaints.