NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Maryland Freelance Invoice Laws
General information about collecting unpaid invoices in Maryland
Last Updated: 2025-01-01 • Always verify with a Maryland attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
6% per annum (legal rate); 10% post-judgment
Small Claims Limit
$5,000
Statute of Limitations
3 years for written contracts, 3 years for oral
Additional Context
Late Fees: Late fees must be reasonable and specified in the contract. Maryland courts enforce agreed-upon commercial provisions.
Interest: Parties can agree to higher rates in writing. Post-judgment interest is 10% in Maryland.
Small Claims: District Court handles small claims. Filing fees are $34-$50. Informal process, attorneys not required.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Act quickly—Maryland has only a 3-year statute of limitations
- ✓ Use written contracts with clear payment terms
- ✓ Include late fee and interest provisions
- ✓ Send invoices immediately upon project completion
- ✓ Follow up at 15, 30, and 45 days for overdue invoices
Common Mistakes to Avoid
- ✗ Waiting too long—3 years passes quickly
- ✗ Not including payment terms in contracts
- ✗ Not knowing the $5,000 small claims limit
- ✗ Filing in wrong district court
- ✗ Skipping demand letters before filing
When to Consult an Attorney
For invoices over $5,000 or if the 3-year deadline is approaching.
Frequently Asked Questions
What is the small claims limit in Maryland?
Maryland District Court handles small claims up to $5,000. Filing fees are $34-$50. The process is informal and designed for self-representation.
How long do I have to sue for an unpaid invoice in Maryland?
Only 3 years for both written and oral contracts—one of the shorter periods. Don't delay pursuing collection.
What interest rate can I charge on overdue invoices in Maryland?
The legal rate is 6% per annum. Post-judgment interest is 10%. You can specify higher pre-judgment rates in your contract.
Where do I file a small claims case in Maryland?
File in the District Court for the county where the defendant resides or does business. Baltimore City has its own District Court.
Do I need a collection license in Maryland?
You can collect your own debts without a license. Third-party agencies must be licensed by the Maryland Collection Agency Licensing Board.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Maryland Courts & Judicial Proceedings Article § 11-107 (Interest)
- Md. Code, Courts § 4-405 (District Court Jurisdiction)
- Md. Code, Courts § 5-101 (Statute of Limitations)
- Maryland Judiciary - District Court
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Maryland who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Maryland State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Maryland attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Maryland state statutes or a licensed Maryland attorney. Happy Freelance Life is not a law firm and does not provide legal services.