Maryland Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: Greater of 75% or the amount equal to $145 times the number of weeks wages due were earned (except in Caroline, Worchester, Kent & Queen Anne's Counties where federal law applies)
MAXIMUM INTEREST RATE: Legal: 6% Judgment: 10% or contract rate
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit cards): 3 years
Written Contract: 3 yearsDomestic Judgment: 12 yearsForeign Judgment: 12 yearsBAD CHECK LAW DAMAGES: Twice check amount up to $1000
MARYLAND BANKRUPTCY PROPERTY EXEMPTIONS (Annotated Code of Maryland):
Can use either the state exemptions below or federal exemptions
The State of Maryland has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real Estate: See "Miscellaneous" section below.
Personal Property: Clothing, books, tools, appliances and instruments up to $2,500 [Courts and Judicial Proceedings 11-504(b)(1)]; books, clothing, furnishings and household goods, appliances and pets up to $500 total [Courts and judicial proceedings 11-504(b)(4)]; burial plot, unlimited amount [5-503]; health aids, unlimited amount [11-504(b)(3)]; lost future earnings recoveries, unlimited amount [Courts and Judicial Proceedings 11-504(b)(2)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Life insurance or annuity contract proceeds if beneficiary is insured's dependent, child or spouse, unlimited amount [Estates and Trusts 8-115]; disability benefits, health benefits, court awards / settlements, unlimited amount [Courts and Judicial Proceedings 11-504(b)(2)]; medical benefits deducted from wages, unlimited amount [Commercial 15-601.1]; fraternal society benefits, unlimited amount [Estates and Trusts 8-115]
Pensions/ Retirement Plans: State employees, unlimited amount [21-502]; Retirement benefits except IRAs, unlimited amount [Courts and Judicial Proceedings 11-504(h)]
Public Benefits / Entitlements: Unemployment compensation, unlimited amount [Labor and Employment 8-106]; workers' compensation, unlimited amount [Labor and Employment 9-732]; crime victims' compensation, unlimited amount [27-826]; aid to families with dependent children and general assistance, unlimited amount [88A-73]
Wages: Earned but unpaid wages; greater of 75% or $145 per week except in Kent, Caroline and Queen Anne's of Worcester Counties, there up to greater of 75% of actual wages or 30% of federal minimum wage [Commercial 15-601.1]
Miscellaneous: Any real or personal property up to $5,500 [Courts and Judicial Proceedings 11-504(b)(5) and 11-504(f)]
