Legal Question in Credit and Debt Law in Maryland

Statute of Limitation for Bad Debt.

I live in Maine and prior to that in Maryland. I borrowed $5000.00 from a Credit Union in Maryland for home improvements. I sold the home and moved to Maine, not paying off the debt. There was no lien or mortgage on the sold property by the Credit Union. Eight years has passed with no contact from the Credit Union until recently from a lawyer representing the Credit Union, suing in Maryland Court for the balance owed, plus eight years of interest. I am totally disabled now and unable to be employed. I have a modest home and any income is from Social Security and the Veterans Administration (100% disabled Vietnam Vet). I answered the lawsuit with the statute of limitations expiration defense, but the plaintiff countered with reference to '' C&J (state statute) 5-102 ''. I am unable to locate what the reference is to, so am unable to determine if the plaintiff is correct or not. There was mention that the contract I had with the Credit Union was ''under seal'' therefore extending the Statute of Limitations to 10 years, which if true, would mean the court would rule in their favor (as I do/did owe the money) and possibly lose my home to a judgement/forced sale scenario. What is the C&J 5-102 ??


Asked on 5/07/01, 6:19 am

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Statute of Limitation for Bad Debt.

Generally, it means that "specialties," or contracts and other instruments "under seal" have a 12-year limitation period. This is a tricky area of the law, and not all documents purporting to be under seal in fact are. So you should get a lawyer who practices in MD (I practice in DC, MD, and VA), who can advise you and, if appropriate, litigate the issue. If nothing else, the uncertainty may result in a reduced settlement amount if you have a lawyer with the ability to put up a good fight.

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Answered on 6/21/01, 10:17 am
Michael Worsham Michael C. Worsham, Esq.

Re: Statute of Limitation for Bad Debt.

C&J refers to the Courts and Judicial Proceedings article of the Maryland Annotated Code. 5-102 is titled specialties. Daniel Press, Esq. gave you as good a substantive answer as I could on what this means. - Michael Worsham

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Answered on 6/21/01, 6:32 pm


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