The collection process in New York can be complex and overwhelming, especially if you’re dealing with debt collectors or facing legal action. If you’re in this situation, it’s essential to understand the collection process and your rights as a debtor. Here’s what you need to know.
Debt Collection Process in New York
Debt collectors in New York use various methods to collect debts, including phone calls, letters, and lawsuits. While they have the right to contact you about your debt, they cannot use abusive or harassing tactics. If you believe a debt collector is breaking the law, you can file a complaint with the New York Attorney General’s office.
Statute of Limitations
New York law limits the time for creditors and debt collectors to bring a lawsuit to collect a debt due to a statute of limitations. For most types of debt, the statute of limitations is six years. Once the statute of limitations has expired, creditors and debt collectors can no longer sue you to collect the debt.
Legal Action
If a creditor or debt collector files a lawsuit against you to collect a debt, you have the right to defend yourself in court. You may also work with a collection lawyer in New York to help you navigate the legal process and protect your rights. If you lose the case, the court may issue a judgment against you, resulting in wage garnishment or bank account levies.
Wage Garnishment
Wage garnishment is a legal process that allows a creditor to take a portion of your wages to pay off a debt. In New York, wage garnishment is only allowed for certain types of debts, such as child support, taxes, and student loans. For other types of debt, creditors must obtain a court order before they can garnish your wages.
Bank Account Levies
A bank account levy is a legal process that allows a creditor to freeze and seize funds from your bank account to pay off a debt. In New York, creditors must obtain a court order before levying their bank account. However, if you owe back taxes or child support, the government may be able to impose your bank account without a court order.
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