What Is the Statute of Limitations in Maryland for Debt Collection?
Debt collection is a common issue faced by individuals and businesses alike. However, every state has its own set of rules and regulations governing the collection of debts. In Maryland, the statute of limitations plays a crucial role in determining how long a creditor has to sue for the collection of a debt. Understanding the statute of limitations is essential, as it can affect your rights and responsibilities when it comes to debt collection.
The Statute of Limitations Explained
The statute of limitations is a legal time limit set by each state within which a creditor can file a lawsuit to collect a debt. Once the statute of limitations has expired, the creditor loses the right to sue you for the debt. This time limit varies depending on the type of debt and the laws of the state in which you reside.
In Maryland, the statute of limitations for most types of debt is three years. This means that if you owe a debt, the creditor has three years from the date of your last payment or the date of default to file a lawsuit against you. It is important to note that making a payment or acknowledging the debt in any way can reset the clock on the statute of limitations.
Types of Debts and Their Statute of Limitations
While the general statute of limitations for debt collection in Maryland is three years, it is important to be aware that certain types of debts may have different time limits. Here are some common types of debts and their corresponding statute of limitations:
1. Oral Agreements: The statute of limitations for debts based on an oral agreement is three years from the date of default or the date of your last payment.
2. Written Contracts: If you have signed a written contract, the statute of limitations is also three years from the date of default or the date of your last payment.
3. Promissory Notes: The statute of limitations for promissory notes, which are written promises to pay a debt, is three years from the date of default or the date of your last payment.
4. Open Accounts: Open accounts, such as credit card debts, have a statute of limitations of three years from the date of default or the date of your last payment.
5. Judgments: If a creditor has obtained a judgment against you in court, they have 12 years to collect the debt in Maryland.
Frequently Asked Questions
Q: What happens if a creditor sues me after the statute of limitations has expired?
A: If a creditor files a lawsuit against you after the statute of limitations has expired, you can raise the defense of the expired statute of limitations in court. If successful, the court will dismiss the lawsuit.
Q: Can a debt collector continue to contact me after the statute of limitations has expired?
A: Although a debt collector can no longer sue you for the debt after the statute of limitations has expired, they may still attempt to collect the debt through other means. However, they cannot threaten legal action or harass you in any way.
Q: Can I be sued for a debt that has been sold to a new creditor?
A: Yes, the new creditor can sue you for the debt within the original statute of limitations period. However, they cannot sue you beyond the original time limit.
Q: Can I reset the statute of limitations by making a partial payment?
A: Yes, making a partial payment or acknowledging the debt in writing can reset the statute of limitations. This can give the creditor a fresh three-year period to sue you for the debt.
Q: Can the statute of limitations be extended?
A: In some cases, the statute of limitations may be extended. For example, if you leave the state or if the creditor obtains a judgment against you, the time limit may be extended.
In conclusion, the statute of limitations in Maryland for debt collection is three years for most types of debts. Understanding the statute of limitations is crucial to protect your rights and ensure that you are not pursued for debts that are beyond the legal time limit. If you are facing debt collection, it is advisable to consult with a legal professional to understand your rights and explore possible options for resolving your debts.