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Contractor gone in Maryland: where the money can come from

Maryland's Guaranty Fund is one of the few that does not require you to sue first: the MHIC claim itself, with a hearing, can produce the award, up to $30,000. File the MHIC complaint and Guaranty Fund claim together. Deposits over one third of the price are a violation on their own.

Run the free check for Maryland

The four paths in Maryland

Card chargebackSame in every state. Dispute for services not rendered within 120 days of the promised completion, no later than 540 days after the payment. Each payment has its own clock.
State fundHome Improvement Guaranty Fund, Maryland Home Improvement Commission (MHIC). Cap: $30,000 per claimant, or the amount paid to the contractor if less; $250,000 total per contractor. Precondition: Licensed home improvement contractor; MHIC claim and hearing, or a court judgment. Deadline: file within three years of when you knew or should have known of the loss (confirm). verified Agency page
Bankruptcy claimIf the company filed, a proof of claim (Official Form 410) with the court by the bar date. A deposit for personal or household services is a priority claim up to $3,800 for cases filed on or after April 1, 2025 (11 U.S.C. 507(a)(7)); the rest is general unsecured.
Lien exposure: Mostly protectedOn an owner-occupied residence, a sub's lien is limited to what you still owed the contractor when the sub gave notice (Real Prop. 9-104(f)).

Is the contractor licensed?

Licensed by the Maryland Home Improvement Commission. Look up the license. Pool installation is home improvement in Maryland; the contractor must hold an MHIC license.

Deposits and the contract

Home improvement contractors may not collect more than one third of the contract price as a deposit (Bus. Reg. 8-617). confirm

Small claims

District Court, small claims, generally up to $5,000 as of 2025; confirm the current limit on the court's site before filing. Above the cap, the regular civil docket, where a lawyer is optional but usual. confirm

In order

  1. Pull the contract, every receipt, and your card or bank statements. The contract page shows where each number lives.
  2. Check the license at the link above. Licensed opens the fund; unlicensed means small claims and a report to the licensing body.
  3. If you paid by card, call the issuer today and open a dispute for services not rendered. The window closes; everything else waits.
  4. Send the demand letter by certified mail. It starts the clock the licensing body and the court will want to see.
  5. File the complaint with Maryland Home Improvement Commission (MHIC). The fund claim hangs off it.
  6. Search PACER for the company. A bankruptcy filing stops the letters and the lawsuit and replaces them with a proof of claim.
  7. Answer any subcontractor notice in writing with proof of what you paid. On an owner-occupied residence, a sub's lien is limited to what you still owed the contractor when the sub gave notice (Real Prop. 9-104(f)).

The paperwork, done

The Contractor Gone kit, $39, fills every letter and form above with your facts: the chargeback script, the demand letter with Maryland's deposit rule cited, the licensing complaint, the fund application, the lien-defense letter, the proof of claim worksheet, and a checklist for hiring the contractor who finishes the job. What's in it, or run the check first; the answers carry into the kit.

Page written 2026-09-07. Rows marked verified were read on the agency page or statute on the date shown in the data; rows marked confirm are from general knowledge and should be checked with the agency. Spot an error? Email jon@homestillworks.com and it gets fixed the same day.