Maryland Garnishment Rules
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- Wage garnishment is legal in Maryland.
- Unemployment benefits may not be garnished except for narrow circumstances.
- Maryland follows the federal wage garnishment limits.
What are the Maryland garnishment rules? Can the Comptroller of Maryland garnish my unemployment checks?
I have been paying back taxes for 4 years, but recently lost my job after 14 years. I receive Maryland unemployment benefits. Can the Comptroller of Maryland garnish my unemployment checks? I am leaving hand-to-mouth as is.
Wage garnishment is permitted under Maryland law. The District Court of Maryland offers an excellent document summarizing Maryland Wage Garnishment (PDF) rules.
Maryland follows the federal rules that limit the amount garnished to 25 percent of the debtor’s disposable income, or not less than an amount equal to 30 times the federal minimum hourly wage.
Unemployment benefits are not wages, and may not be garnished except for very narrow circumstances. These circumstances include child or spousal support, and generally not delinquent state taxes. However, that is the general rule, and Maryland may be an exception.
Call the Department of Labor, Licensing and Regulation Division of Unemployment Insurance and ask the customer service representative about the state tax authority’s ability to garnish unemployment benefits. Call again later and ask the same question to a different customer service representative. If the two answers match, then you have an fair answer to your question.
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More Information
See the Bills.com article Maryland Collection Laws to learn more about other remedies collection agents and original creditors can use to collect debts from Maryland residents. The Bills.com Wage Garnishment article explains the federal wage garnishment rules.
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Dealing with debt
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Housing debt totaled $12.612 trillion and non-housing debt was $4.891 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Collection and delinquency rates vary by state. For example, in North Carolina, 15% have student loan debt. Of those holding student loan debt, 8% are in default. Auto/retail loan delinquency rate is 4%.
While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.
