Maryland Debtor And Creditor Legal Questions

Your question about  judgments after the death of the judgment creditor raises a few important issues that may be of broad general interest to readers of this site. I have been representing clients on both sides of these issues in Maryland and D.C. for over 20 years. Generally, civil, monetary judgments in Maryland last for 12 years and can be renewed. Statutes change regularly and you should not rely on the term being 12 years. Also generally, a judgment is an item of property that can be sold or otherwise transferred by the judgment holder to a third party. During his or her lifetime, the person who got the judgment (the plaintiff, or, after entry of the judgment, the judgment creditor) can sell or give away the judgment. The same can happen through his or her will. In your case, if the judgment started as a valid, civil, money judgment, it is probably still a valid civil money judgment. Like any other property in the estate of the judgment creditor, the right to the judgment would pass under the will of the judgment creditor to whoever he named in his will if he had a will, and otherwise pass under the state law of intestacy to whoever the state said was the beneficiary of that kind of property.  Of course, other factors can always intervene that could alter the above. This is at best a general overview. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation. This web site and the responses herein, including this response,  are designed for general information only. The information presented at this site should not be construed to be  and is not formal legal advice. No attorney-client relationship exists and no attorney-client relationship is formed or created by this response or any response on this website. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More

Your question about when a creditor may and may not garnish a bank account raises a number of important issues that may be of broad general interest to readers of this site. I have been representing clients on both sides of these issues in Maryland and D.C. for over 20 years. One common question is whether we're talking about a debt that is or isn't a "consumer debt". Consumer debts are governed by the federal Fair Debt Collection Practices Act. Actions taken on consumer debts that are not in accordance with the FDCPA could be "illegal", with penalties against the creditor more severe than just a civil remedy. While it is not guaranteed to be the most recent version of the statute, you can read a version of the Fair Debt Collection Practices Act at http://www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm Another question is whether a judgment has already been entered in a court and, if so, whether that judgment is "final". Without a judgment, the court process of garnishment would not be permitted and would be "illegal". In Maryland, generally, garnishment can begin as soon as a few days after a judgment is entered. During a brief period after entry of a judgment, the creditor legally may not seek to garnish a bank account or other property. I am not writing that time period here because these time periods can change and vary by court. Many creditors wait for any appeal period from the entry of judgment to expire to see if there is an appeal of the judgment and therefore whether the judgment has or has not become "final". A creditor might legally be allowed to begin garnishment on a judgment that was "on appeal" but would be in legal peril if the judgment were reversed on appeal and if the creditor had taken the defendant's property through that judgment that was reversed. Once there is a "final" judgment, and if the Fair Debt Collection Practices Act is being followed, one of the best protections for the defendant/judgment debtor would be a written agreement with the creditor to "stay" execution on the judgment while payments were being made. If the payments were being made in accordance with that agreement, a court might be able to intervene if the creditor was abusing that agreement. There are many details that can go into such a settlement agreement. Such a settlement agreement can be entered into before or after entry of a judgment and the possible terms are probably as varied as the number of deals that have ever been done. Of course, other factors can also intervene, like a bankruptcy filing, that would alter the above. Section 362 of Title 11 of the United States Code, sometimes called the "Automatic Stay", generally bars collection activity if any kind without permission of the bankruptcy court. This is at best a general overview. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation.... Read More

If a creditor sues you and obtains a judgment against you, the creditor can then file with the court to garnish wages or levy a bank account. If you have a delinquent loan with the same bank where you keep your savings, that bank may be able to dip into your account without a court order depending on the terms of your contract. ... Read More