New York Debt Collection Laws: Time Limits, Garnishment and Your Rights
New York debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for New York
- Time limit to sue on a written contract
- 6 years for contract actions generally. But a lawsuit against a consumer arising from a consumer credit transaction (such as a credit card or consumer loan) must be brought within 3 years. N.Y. CPLR 213(2); CPLR 214-i
- Wage garnishment limit
- Stricter than federal law. An income execution may take no more than 10% of gross income, and never more than 25% of weekly disposable earnings or the amount by which disposable earnings exceed 30 times the higher of the federal or New York State minimum hourly wage. N.Y. CPLR 5231(b); CPLR 5205(d)(2)
- Money protected in a bank account
- Yes. If exempt payments (such as Social Security or SSI) were directly deposited in the 45 days before the restraint, $3,425 in the account cannot be frozen (for cases started on or after April 1, 2024). N.Y. CPLR 5205(l); CPLR 5222(h)-(i); CPLR 5205(a)(9); NYDFS adjustment effective April 1, 2024
- Answering a debt lawsuit
- Appear (by answer or motion) within 20 days after the summons is personally delivered to you, or within 30 days after service is complete if you were served another way (for example, by delivery to another person at your home plus mailing). N.Y. CPLR 320(a)
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for contract actions generally. But a lawsuit against a consumer arising from a consumer credit transaction (such as a credit card or consumer loan) must be brought within 3 years. CPLR 213: https://www.nysenate.gov/legislation/laws/CVP/213. CPLR 214-i was added by the Consumer Credit Fairness Act (2021) and does not apply where UCC Article 2 or certain other provisions govern. Source: N.Y. CPLR 213(2); CPLR 214-i |
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| Time limit for credit cards and open accounts | 3 years for actions on consumer credit transactions, including credit cards. 3 years from treatment for medical debt suits by hospitals or licensed health care professionals. CPLR 213-d: https://www.nysenate.gov/legislation/laws/CVP/213-D Source: N.Y. CPLR 214-i; CPLR 213-d |
| Can a payment restart the clock? | For consumer credit debts, once the 3-year period expires, a later payment, affirmation of the debt or other activity does not revive or extend it. For other contract claims, only a written, signed acknowledgment or promise can take a claim out of the limitations period; the effect of a payment is left to other law. GOL 17-101: https://www.nysenate.gov/legislation/laws/GOB/17-101 |
| How long a judgment lasts | A money judgment is presumed paid 20 years after the creditor was first entitled to enforce it. A signed written acknowledgment or a payment within the 20 years restarts the 20 years from that date. Source: N.Y. CPLR 211(b) |
If you are sued
| Answering a debt lawsuit | Appear (by answer or motion) within 20 days after the summons is personally delivered to you, or within 30 days after service is complete if you were served another way (for example, by delivery to another person at your home plus mailing). NYC Civil Court and other local courts may have their own appearance rules; Source: N.Y. CPLR 320(a) |
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Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law. An income execution may take no more than 10% of gross income, and never more than 25% of weekly disposable earnings or the amount by which disposable earnings exceed 30 times the higher of the federal or New York State minimum hourly wage. If disposable earnings are at or below that floor, nothing may be taken. Income executions are not allowed in medical debt actions brought by hospitals or health care professionals. 90% of earnings from the last 60 days are exempt from other enforcement. |
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| Money protected in a bank account | Yes. If exempt payments (such as Social Security or SSI) were directly deposited in the 45 days before the restraint, $3,425 in the account cannot be frozen (for cases started on or after April 1, 2024). In addition, an amount equal to 240 times the higher of the federal or state minimum hourly wage cannot be restrained. Up to $1,325 in cash can also be exempt if no homestead exemption is claimed. Inflation-adjusted every 3 years by the Department of Financial Services; next adjustment April 1, 2027. Statutory base amounts: $2,500 and $1,000 (https://www.nysenate.gov/legislation/laws/CVP/5205). |
| Homestead exemption | Depends on the county: $204,825 in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; $102,400 in all other counties (amounts effective April 1, 2024). Statutory base tiers $150,000 / $125,000 / $75,000 (https://www.nysenate.gov/legislation/laws/CVP/5206), adjusted every 3 years; next adjustment April 1, 2027. |
| Vehicle exemption | One motor vehicle up to $5,500 in value above liens, or $13,625 if the vehicle is equipped for a debtor with a disability (amounts effective April 1, 2024). Statutory base amounts $4,000 / $10,000; adjusted every 3 years (next April 1, 2027). |
| Claiming an exemption | When a bank account is restrained, the creditor must send the debtor a notice and exemption claim form within 4 days of serving the restraint. The notice lists exempt money (Social Security, SSI, 90% of wages from the last 60 days, and protected direct deposits) and tells the debtor to act promptly by returning the exemption claim form. Disputes are decided by the court. Source: N.Y. CPLR 5222(d)-(e) |
| Bankruptcy exemptions | New York lets a debtor in bankruptcy choose either the New York exemptions or the federal bankruptcy exemptions. DCL § 284 still states that federal exemptions are not authorized, but § 285 allows the federal election notwithstanding any other law. Source: N.Y. Debt. & Cred. Law § 285 |
Debt collectors and interest
| State debt collection law | Yes. General Business Law Article 29-H applies to principal creditors (including original creditors) and their agents collecting consumer debts. It bars posing as law enforcement, collecting fees not legally owed, contacting an employer before judgment (unless the debtor agreed to a wage assignment), harassment, threatening actions not normally taken, simulating legal process, and using social media to collect. Source: N.Y. Gen. Bus. Law §§ 600, 601 |
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| Medical debt protections | Yes. Credit reporting agencies may not report or keep medical debt in a consumer's file. Hospitals and licensed health care professionals must sue within 3 years of treatment, and income executions (wage garnishment) are not allowed in medical debt actions they bring. |
| Interest rate limits | Judgment interest is 9% a year generally, but 2% a year on judgments for consumer debt against a natural person. The 2% consumer-debt rate came from a 2021 amendment; it also applies to unpaid balances of older consumer judgments going forward. Source: N.Y. CPLR 5004 |
Where to get help in New York
- New York State Office of the Attorney General, Bureau of Consumer Frauds and Protection
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in New York?
6 years for contract actions generally. But a lawsuit against a consumer arising from a consumer credit transaction (such as a credit card or consumer loan) must be brought within 3 years.
How long can a creditor sue on a credit card debt in New York?
3 years for actions on consumer credit transactions, including credit cards. 3 years from treatment for medical debt suits by hospitals or licensed health care professionals.
Does making a payment restart the statute of limitations in New York?
For consumer credit debts, once the 3-year period expires, a later payment, affirmation of the debt or other activity does not revive or extend it. For other contract claims, only a written, signed acknowledgment or promise can take a claim out of the limitations period; the effect of a payment is left to other law.
How long does a court judgment last in New York?
A money judgment is presumed paid 20 years after the creditor was first entitled to enforce it. A signed written acknowledgment or a payment within the 20 years restarts the 20 years from that date.
How much of my wages can be garnished in New York?
Stricter than federal law. An income execution may take no more than 10% of gross income, and never more than 25% of weekly disposable earnings or the amount by which disposable earnings exceed 30 times the higher of the federal or New York State minimum hourly wage. If disposable earnings are at or below that floor, nothing may be taken. Income executions are not allowed in medical debt actions brought by hospitals or health care professionals. 90% of earnings from the last 60 days are exempt from other enforcement.
How much money in a bank account is protected from creditors in New York?
Yes. If exempt payments (such as Social Security or SSI) were directly deposited in the 45 days before the restraint, $3,425 in the account cannot be frozen (for cases started on or after April 1, 2024). In addition, an amount equal to 240 times the higher of the federal or state minimum hourly wage cannot be restrained. Up to $1,325 in cash can also be exempt if no homestead exemption is claimed.
What is the homestead exemption in New York?
Depends on the county: $204,825 in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; $102,400 in all other counties (amounts effective April 1, 2024).
Can a creditor take my car in New York?
One motor vehicle up to $5,500 in value above liens, or $13,625 if the vehicle is equipped for a debtor with a disability (amounts effective April 1, 2024).
What debt collection practices are illegal in New York?
Yes. General Business Law Article 29-H applies to principal creditors (including original creditors) and their agents collecting consumer debts. It bars posing as law enforcement, collecting fees not legally owed, contacting an employer before judgment (unless the debtor agreed to a wage assignment), harassment, threatening actions not normally taken, simulating legal process, and using social media to collect.
What protections apply to medical debt in New York?
Yes. Credit reporting agencies may not report or keep medical debt in a consumer's file. Hospitals and licensed health care professionals must sue within 3 years of treatment, and income executions (wage garnishment) are not allowed in medical debt actions they bring.
What is the maximum legal interest rate in New York?
Judgment interest is 9% a year generally, but 2% a year on judgments for consumer debt against a natural person.
How do I respond to a debt collection lawsuit in New York?
Appear (by answer or motion) within 20 days after the summons is personally delivered to you, or within 30 days after service is complete if you were served another way (for example, by delivery to another person at your home plus mailing).
How do I stop a garnishment or claim an exemption in New York?
When a bank account is restrained, the creditor must send the debtor a notice and exemption claim form within 4 days of serving the restraint. The notice lists exempt money (Social Security, SSI, 90% of wages from the last 60 days, and protected direct deposits) and tells the debtor to act promptly by returning the exemption claim form. Disputes are decided by the court.
Which bankruptcy exemptions can I use in New York?
New York lets a debtor in bankruptcy choose either the New York exemptions or the federal bankruptcy exemptions.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.