Debt Collection Laws in Maryland
If you're dealing with debt collection in Maryland, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
How much of my paycheck can be garnished in Maryland?
In most Maryland counties, at least $450 a week of your pay is protected, and a creditor can only take 25% of anything above that. Four counties — Caroline, Kent, Queen Anne's, and Worcester — use the less-protective plain federal formula instead, so where you live changes your number.
That county-by-county split is easy to miss if you're comparing Maryland to a state with one uniform rule statewide — worth double-checking which formula applies to you specifically before assuming the more protective number is the one in play.
Tier: Meaningfully stricter than the federal formula — see the full 20-state ranking.
Can a creditor take money from my bank account in Maryland?
You can shield up to $6,000 in cash, bank funds, or any other property in Maryland — but only if you actively file for this exemption within 30 days of a levy. It doesn't happen automatically.
There's also a smaller $500 deposit-account exemption available without any election, but it doesn't stack on top of the $6,000 wildcard — the two combine to a $6,000 ceiling, not $6,500. Separate, smaller exemptions cover household goods, clothing, and tools of a trade.
Is my home protected from creditors in Maryland?
A judgment creditor can force the sale of your home in Maryland no matter how much equity you have — outside of bankruptcy, the state has no homestead exemption at all, only the $6,000 general exemption above.
Filing for bankruptcy changes the picture: Maryland requires debtors to use state exemptions rather than the federal list, and its bankruptcy-specific homestead figure is tied to and adjusts alongside the federal exemption on the same three-year cycle. The Maryland legislature has had bills pending in recent sessions that would create a real homestead exemption from ordinary judgment execution — worth checking whether that's since become law before treating 'no homestead exemption' as permanent.
How long can a debt collector sue me in Maryland?
A collector only has 3 years to sue you in Maryland over credit card debt or any other contract — one of the shortest windows in the country. But once they do win a judgment, that judgment itself stays enforceable for 12 years.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written contract | 3 years |
Once a creditor actually wins a judgment against you, that judgment itself is enforceable for 12 years and can be renewed — a much longer window than the original 3-year deadline to file suit in the first place.
See how Maryland's 3 years deadline compares to all 20 states.
Does Maryland have its own debt collection law beyond the federal FDCPA?
Maryland bans harassing, deceptive, or abusive collection tactics from your original lender too, not just outside collectors — closing a gap the federal FDCPA leaves open.
Prohibited conduct includes threatening violence, threatening criminal prosecution when there's no actual criminal violation, contacting your employer to pressure your job status, and contacting you at unreasonable hours or with unreasonable frequency. Maryland courts have generally read this law broadly in consumers' favor, though some recent appellate decisions have narrowed its reach in specific fact patterns — it's not an unlimited shield.
Where can I find free or low-cost legal help in Maryland?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Maryland, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.