Maryland Debt Relief

Maryland Credit Card Debt law includes a 3-year time limit for creditors filing lawsuits on outstanding open-ended accounts. This Statute of Limitations (SOL) is shorter than in most states. Although the statute begins running from the date of the last payment missed, any subsequent partial payments will reset the clock from the date of that payment. Once a summons is served, the Defendant has 20 days to answer. It is wise to send answers by certified mail because a failure to respond results in a default judgment for the creditor.

Judgment Enforcement

Maryland judgments are in force for 12 years and may be renewed for another 12 years. Judgment interest is charged at the contract rate or 10% per year. A lien can be placed on real property by recording and indexing the judgment in the appropriate county. Creditors may levy any type of property whatsoever, but for exempted wages of 75%, $145 per week, whichever is greater. Homestead exemptions are allowed up to $3,000. Retirement plan interest is also exempt.

Judgment by Confession is recognized in Maryland. This type of contract language is found in the initial credit agreement. It allows a ruling without court order, making the Defendant legally liable for the debt. The law allows for a period when the defendant can contest the entry of judgment, but afterwards, it may not be reversed.

Debt Settlement

Many consumers would rather avoid letting the courts dictate how much of their pay will go to creditors. They can do this by arranging for Debt Settlement, letting them have a say in how much they pay every month. Debt Settlement is also better for consumers because payments are interest free.