New York: Credit, Debt & Bankruptcy

Federal laws like the FDCPA and FCRA set a floor in every state. But the details that matter most in New York come from New York law and New York courts. That includes how long you have to answer a lawsuit and how long a creditor can sue. It also covers how much of your income is protected.

A collector might be calling. A summons might have just arrived. Either way, knowing where to find the official state resources matters as much as knowing your federal rights.

Your official New York resources

These are the state-level starting points most New Yorkers dealing with debt problems need:

• New York Attorney General — Credit, Debt & Lending — consumer protection information plus the state complaint process for debt collectors, credit repair companies, and other businesses.
• New York Courts — CourtHelp — the judicial branch's free, step-by-step self-help guide to consumer debt cases: answer forms, deadlines, and what happens at each stage.
• LawHelpNY — the statewide legal aid portal: plain-language guides plus a directory of free and low-cost legal help by county, in multiple languages.
• U.S. Bankruptcy Courts — New York has four federal districts: Northern (Albany, Syracuse, Utica), Southern (Manhattan, White Plains, Poughkeepsie), Eastern (Brooklyn, Queens, Long Island), and Western (Buffalo, Rochester).

If you need	Official starting point
To respond to a debt lawsuit	New York Courts CourtHelp
To report a collector or scam	Attorney General consumer page
Free or low-cost legal help	LawHelpNY
Bankruptcy forms and local rules	Your district's bankruptcy court site

Debt lawsuits in New York

When a collector sues in a New York court, the defendant generally must serve a written answer on the plaintiff. That answer also has to be filed with the court.

CourtHelp describes a window that is commonly 20 or 30 days, depending on how service happened. It can be as little as 10 days for certain in-hand service in City Courts outside New York City. The summons received is what actually controls, so it's worth checking first.

Missing the window lets the collector ask for a default judgment. That can lead to wage garnishment or a frozen bank account.

Filing an answer forces the collector to prove its case. New York's Consumer Credit Fairness Act now requires collectors to attach specific account information to consumer-debt complaints.

Court filing fees can sometimes be waived for people with low incomes. A good starting point is what to do when you're sued for a debt. The debt lawsuit response checklist walks through the process alongside the official guides.

Statute of limitations basics

New York shortened its deadline for suing on consumer credit debt to three years, measured from the date of default. This change came from the Consumer Credit Fairness Act, which took effect in 2022.

That's shorter than the older six-year contract period many people still assume applies. The start date and the type of agreement can also change the math. So it's worth verifying how current law applies to your specific debt.

An expired limitations period doesn't apply itself. It's generally a defense a person must raise on their own — courts don't apply it automatically. Read how the statute of limitations on debt works before making any decision about an old account.

Wage garnishment and protected income

Federal law caps how much of a paycheck can be garnished for ordinary debts. States are free to protect more.

New York's income-execution rules generally cap what a judgment creditor can take. It's a lower share of wages than the federal ceiling. They also protect lower-wage workers with a floor tied to the minimum wage.

As of mid-2026, that's the general picture. The exact formula and any exemption claims are worth confirming with the court or legal aid before relying on them.

Social Security, public assistance, unemployment, and certain other benefits are generally protected from commercial garnishment, regardless of state. Money from those sources is often protected in a bank account too.

Garnishment in New York typically follows a court judgment in consumer cases. That's one more reason responding to a lawsuit matters. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in New York

Bankruptcy is federal, but it runs through local courts. Which of New York's four districts handles a case depends on the county where the filer lives.

Each district's website posts local rules, forms, filing locations, and self-representation information: Northern, Southern, Eastern, and Western.

State law also shapes which property exemptions filers can use to protect a home, vehicle, and belongings. New York lets filers choose between the state exemption lists and the federal ones.

The specifics and any dollar figures adjust over time. It's worth verifying current exemptions with the court, legal aid, or a bankruptcy attorney rather than relying on any static article.

For the big picture, start with our bankruptcy hub and the guide to filing without a lawyer.

Free and low-cost legal help

Many New Yorkers qualify for free help and never use it. LawHelpNY routes people to legal aid offices by county and topic. New York Courts CourtHelp posts free guides and forms too.

Court help centers can explain forms and procedure for free, though they can't give legal advice. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

• ✕Letting the response deadline pass because settlement talks are underway. Negotiating doesn't pause the court clock — a default judgment can still be entered.
• ✕Making a small payment on an old debt before checking the dates. In New York, a payment or written acknowledgment can restart the statute of limitations.
• ✕Assuming the old six-year clock still applies to a credit card. New York shortened it to three years for consumer credit debt in 2022.
• ✕Filing in the wrong place. New York has four bankruptcy districts and many local courts, and the right one depends on where the filer lives.
• ✕Paying a company for help before checking LawHelpNY and court help centers, which are free.
• ✕Treating a default judgment as final without asking about options. Courts can sometimes set defaults aside, but the window and grounds are limited.

Credit repair companies in New York: registration, bond, and how to check

New York regulates credit repair under General Business Law Article 28-BB, "Credit Services Business" (§458-a to 458-k). The article has no registration, license, or bond requirement, so there is no New York registry to search. Instead it takes a harder line on money: §458-e makes it unlawful for a credit services business to collect any fee before performing the services in the contract, with no bond exception. A written contract and an information statement are required (§§458-c, 458-d, 458-f), and the Attorney General enforces the article (§458-j).

How to check a company: with no state list, search the CFPB complaint database. A New York company asking for payment before it has done anything is asking for something the law prohibits.

How to complain: the New York Attorney General's complaint page and the CFPB.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. Accurate, timely items cannot be removed by anyone. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in New York

New York has four federal bankruptcy districts — Northern, Southern, Eastern, and Western — and a case is filed in the one serving the county where the filer lives. The district site posts local rules, local forms, and any pro se help or volunteer-lawyer program.

The New York State Bar Association Lawyer Referral Service refers to vetted private attorneys for a published $35 30-minute consultation; it does not cover New York City, Long Island, Westchester, and several upstate counties, which have their own county bar referral services listed on the same site.

If income is limited, the LSC legal aid locator finds the federally funded program for any New York address, and the NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path, what a consultation costs, and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

Can my wages be garnished in New York for credit card debt?

Yes, but New York's income-execution rules generally cap what a judgment creditor can take at a lower share of wages than the federal ceiling, and they also protect lower-wage workers with a floor tied to the minimum wage. Garnishment in New York typically follows a court judgment in a consumer case, so responding to a lawsuit is what keeps that decision open.

What is New York's statute of limitations on credit card debt?

New York shortened its deadline for suing on consumer credit debt to three years, measured from the date of default, under the Consumer Credit Fairness Act that took effect in 2022. That's shorter than the older six-year contract period many people still assume applies, so it's worth verifying how current law applies to a specific debt.

How long do I have to respond to a debt lawsuit in New York?

CourtHelp describes a window that is commonly 20 or 30 days depending on how service happened, and it can be as little as 10 days for certain in-hand service in City Courts outside New York City. The summons actually received is what controls, so it's worth checking that first.

Can a payment restart the statute of limitations on an old debt in New York?

Yes — in New York, a new payment, even a small one, can restart the clock on an old debt, and so can a written acknowledgment of the debt. That's why many people check the dates before paying anything on a debt they haven't touched in years.

Where do I find legal aid in New York?

LawHelpNY is the statewide legal aid portal, routing people to legal aid offices by county and topic with plain-language guides in multiple languages. New York Courts' CourtHelp also posts free self-help guides and forms for consumer debt cases.

What happens if I don't respond to a debt lawsuit in New York?

Missing the response window lets the collector ask for a default judgment, which can lead to wage garnishment or a frozen bank account. Filing an answer instead forces the collector to prove its case, and under New York's Consumer Credit Fairness Act, collectors must now attach specific account information to consumer-debt complaints.

How long does a judgment last in New York?

This guide doesn't state a specific judgment-duration or renewal figure for New York — see the sections above on lawsuits and judgments, and confirm current renewal rules with New York Courts' CourtHelp or a New York attorney.

Can I choose New York's bankruptcy exemptions or the federal ones?

Yes — New York lets filers choose between the state exemption lists and the federal ones to protect a home, vehicle, and belongings. The specifics and any dollar figures adjust over time, so it's worth verifying current exemptions with the court, legal aid, or a bankruptcy attorney.

Do credit repair companies have to be registered in New York?

No. General Business Law Article 28-BB (§458-a et seq.) has no registration, license, or bond requirement, so there is no New York registry to search. Instead, §458-e flatly prohibits a credit services business from collecting any fee before performing the contracted services, and the federal CROA rules apply on top.

When to talk to a professional