Statute of Limitations for Debt in Maryland: Know Your Rights
If you’re facing a debt collection lawsuit or struggling with unpaid debts in Maryland, it’s important to understand the statute of limitations for debt. This legal deadline determines how long a creditor or debt collector has to file a lawsuit against you or obtain a judgment to collect a debt. Once the statute of limitations has expired, the creditor or debt collector loses the right to sue you or take legal action to collect the debt.
In this article, we’ll explain the statute of limitations for debt in Maryland, including the time periods for different types of debts, how the clock starts ticking, and what you can do to protect your rights.
What is the Statute of Limitations for Debt in Maryland?
In Maryland, the statute of limitations for most types of debts is three years. This means that a creditor or debt collector has three years from the date of your last payment or written acknowledgement of the debt to file a lawsuit against you. If the creditor or debt collector fails to file a lawsuit within this time frame, the debt becomes "time-barred" and unenforceable in court.
It’s important to note that the statute of limitations can vary depending on the type of debt. Here are some common types of debts and their corresponding statute of limitations in Maryland:
- Oral contracts (e.g. verbal agreements): 3 years
- Written contracts (e.g. credit card agreements, promissory notes): 3 years
- Open-ended accounts (e.g. credit cards, lines of credit): 3 years
- Auto loans: 4 years
- Debts owed to the government: 3 years (for most taxes), 10 years (for some federal taxes)
It’s also worth noting that the clock starts ticking on the statute of limitations from the date of your last payment or written acknowledgement of the debt. If you make a payment or promise to pay after the debt has become time-barred, the clock may reset and the creditor or debt collector may have another three years to file a lawsuit.
What Happens When a Debt is Time-Barred?
When a debt becomes time-barred, it means that the creditor or debt collector can no longer sue you or take legal action to collect the debt. However, this doesn’t mean that the debt disappears or that you’re off the hook for paying it.
You still owe the debt, and the creditor or debt collector can still try to collect it through non-legal means, such as phone calls, letters, or debt collection agencies. However, they can no longer threaten to sue you or take legal action to collect the debt.
It’s important to know your rights when dealing with debt collectors. Under federal law, debt collectors are prohibited from using abusive or harassing tactics to collect a debt, such as calling you at all hours of the day or using profane language. If you believe that a debt collector has violated your rights, you can file a complaint with the Consumer Financial Protection Bureau or consult with a consumer protection attorney.
How to Protect Your Rights
If you’re facing unpaid debts or a debt collection lawsuit, it’s important to understand your rights and options. Here are some steps you can take to protect your rights:
Know the statute of limitations for your debts: Understanding the time frame for different types of debts can help you determine whether a debt is time-barred and whether a debt collector can take legal action to collect the debt.
Keep track of your payments and written acknowledgements: If you make a payment or promise to pay a debt, make sure to keep records of the date and amount. Similarly, if you dispute a debt or ask for verification, make sure to do so in writing and keep a copy of the correspondence.
Don’t ignore debt collection notices or lawsuits: Ignoring a debt collection notice or lawsuit can lead to a default judgment against you, which can make it easier for the creditor or debt collector to garnish your wages or seize your property. If you receive a notice or lawsuit, consult with a consumer protection attorney to understand your options.
Consider debt settlement or bankruptcy: If you’re struggling with overwhelming debt, you may want to consider options such as debt settlement or bankruptcy. These options can help you reduce or eliminate your debts and protect your assets.
Conclusion
In Maryland, the statute of limitations for most types of debts is three years. Once the statute of limitations has expired, a creditor or debt collector loses the right to sue you or take legal action to collect the debt. However, you still owe the debt, and the creditor or debt collector can still try to collect it through non-legal means.
If you’re facing unpaid debts or a debt collection lawsuit, it’s important to understand your rights and options. By knowing the statute of limitations for your debts, keeping track of your payments and written acknowledgements, and consulting with a consumer protection attorney, you can protect your rights and make informed decisions about your finances.
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