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.
Maryland's 2026 debt outlook
Bankruptcy filings in Maryland ran 13,196 in the 12 months ending March 2026, versus 11,302 the year before (+16.8%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Maryland sits at 0.9%, trending toward roughly 1% by the end of 2026 (drifting up). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Maryland residents ran 3,758 so far in 2026, versus 3,255 over the same window in 2025 (+15%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Maryland?
Maryland protects the greater of 75% of your disposable wages, or 30 times the state minimum hourly wage per week worked — at Maryland's current $15/hour minimum wage, that's a floor of $450 a week, applied the same way statewide under Md. Code, Comm. Law § 15-601.1.
This is a single, uniform statewide formula rather than a flat federal-equivalent rule — older sources sometimes describe a handful of Maryland counties (Caroline, Kent, Queen Anne's, Worcester) as using a separate, less-protective federal-only formula, but the current statutory text has no county-by-county carve-out; the 75%/30x-minimum-wage protection applies to every Maryland wage earner regardless of county. Any medical insurance premium your employer deducts from your paycheck is excluded from the garnishment calculation entirely.
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.