Each state is different, but in Maryland, a creditor has 3 years to bring suit from that later of when the last payment was made upon the debt or when services were last provided to the debtor. If you don’t file suit within the 3-year statute of limitations period, then, unfortunately, you are time-barred from obtaining a judgment  

If the debtor never made a payment, the statute of limitations period would begin from the date the contract was entered.  If the debtor did make a payment upon the debt, then the payment made extends the statute of limitations but only if that payment is made before the original 3-year statute of limitations expires.  If a payment is received after the 3-year statute of limitations expired, that payment does not extend the statute of limitations. 

Often, you may be able to reach an agreement with a debtor, which allows for them to make payments upon the debt to avoid a judgment being entered against them. In this situation and so long that the payments started before the statute of limitations expired, the statute of limitation time period starts over each time the debtor makes a payment, essentially extending the period for another 3 years from the last payment date. 

As a creditor, you mustn’t wait on your delinquent accounts.   Be proactive and ensure that you note the statute of limitations time period and provide your attorney with the necessary information to confirm your lawsuit is filed promptly.  

If you are unsure of the statute of limitations in your particular case, you should consult with a collections lawyer.

To find out how the collections attorneys and team at Andalman and Flynn, P.C. can help you, please visit Andalman and Flynn Collections. Contact us at 301-563-6685.

About Andalman & Flynn Collections: For decades, businesses and professionals have been turning to the experienced collections attorneys at Andalman & Flynn for their debt recovery needs. A licensed collections agency, their experienced team successfully navigates the complex laws surrounding debt collection practices. The firm combines cutting-edge technology with savvy, effective debt resolution methods that result in high success rates and fast recovery times. For more information, please visit www.andalmanflynncollections.com.