State Finance - Claims of the State - Settlement

Earlier debt settlements for Maryland state debtors

Beginning October 1, 2026, Maryland’s Comptroller can settle overdue state claims without waiting two years, including claims already confirmed by a court judgment. This covers people who receive or collect state money, those who guarantee their payment, and other people. Claims against permanently closed businesses can be settled no matter how long they have been overdue. The Comptroller must first thoroughly review the claim and find that the State cannot collect it through legal action. To serve the State’s interests, the Comptroller can cancel some or all of the amount owed or interest. Settlement is the Comptroller’s choice, not a debtor’s automatic right. Once the agreed amount is paid into the State Treasury, the Comptroller must release both the debtor and payment guarantor. For settlements below full payment, the Comptroller must prepare and keep a record in its office explaining the settlement’s basis.