| New York at a glance | |
|---|---|
| Time limit to sue on card debt | 3 years for consumer credit debts like credit cards. |
| Deadline to answer a debt lawsuit | 20 days if the papers were handed to you personally, or 30 days after proof of service is filed if served another way. |
| Wage garnishment | An income execution takes 10% of gross pay, capped at 25% of disposable earnings. |
| Where to complain | New York Attorney General complaint |
How long creditors have to sue
3 years for consumer credit debts like credit cards. After that, a payment or acknowledgment doesn't revive or extend the debt. (N.Y. CPLR 214-i)
The time limit for suing is separate from credit reporting: most negative items can stay on your credit report for up to 7 years from when you first fell behind, regardless of state.
If you're sued in New York
Answer deadline: 20 days if the papers were handed to you personally, or 30 days after proof of service is filed if served another way. Check your own summons for the exact date, because missing it usually means a default judgment.
Court help: LawHelpNY: how to read a summons.
Step-by-step help and common defenses are in our lawsuit and garnishment guide.
What's protected if there's a judgment
Your paycheck
An income execution takes 10% of gross pay, capped at 25% of disposable earnings. Nothing can be taken if your weekly disposable earnings are at or below 30 times the higher of the federal or state minimum wage. (N.Y. CPLR 5231)
Your bank account
An amount equal to 240 times the minimum wage is protected in your bank account (about $3,800 to $4,100 in 2026, depending on region). (N.Y. CPLR 5222(i))
Everywhere in the US, Social Security, SSI and VA benefits are generally off-limits to private creditors, and banks must automatically protect two months of those benefits when they're direct-deposited.
Debt collectors in New York
New York's General Business Law § 601 covers creditors and their agents, and the Department of Financial Services has its own rules for third-party collectors. New York City also requires collection agencies to be licensed. Federal rules still apply on top of state law. See your rights and free dispute letters.
Debt settlement and debt relief companies
New York doesn't currently require most for-profit debt settlement companies to be licensed, so check any company carefully with the Attorney General and the CFPB complaint database. Under federal law, debt relief companies that sell by phone can't charge fees until they've settled at least one of your debts. Read how settlement works.
Medical debt
The Fair Medical Debt Reporting Act bars hospitals, health care providers and ambulance services from reporting medical debt to credit bureaus. More in our medical bills guide.
Where to complain or check a company
- New York Attorney General complaint
- NY Department of Financial Services complaint
- CFPB complaint portal (federal)
Sources
Laws and dollar amounts change, and court rules vary by county. This page is general information, not legal advice. For your situation, contact a legal aid office or a New York consumer attorney.