New York debt statute of limitations

New York limitation periods by type of debt

The Consumer Credit Fairness Act capped consumer-credit debt (including credit cards) at 3 years (§ 214-i, effective 2022); other written contracts remain 6 years (§ 213).

What the New York statute says

“The following actions must be commenced within six years: 1. an action for which no limitation is specifically prescribed by law; 2. an action upon a contractual obligation or liability, express or implied, except as provided in section two hundred thirteen-a or two hundred fourteen-i of this article or article 2 of the uniform commercial code or article 36-B of the general business law;”
N.Y. C.P.L.R. 213(2)

“An action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant must be commenced within three years, except as provided in section two hundred thirteen-a of this article or article 2 of the uniform commercial code or article 36-B of the general business law.”
N.Y. C.P.L.R. 214-i

Does paying restart the clock in New York?

Once the 3-year period for consumer-credit debt has run, a later payment, a written or oral promise, or other activity on the debt does not revive or extend it (N.Y. C.P.L.R. § 214-i).

“An acknowledgment or promise contained in a writing signed by the party to be charged thereby is the only competent evidence of a new or continuing contract whereby to take an action out of the operation of the provisions of limitations of time for commencing actions under the civil practice law and rules other than an action for the recovery of real property.”
N.Y. Gen. Oblig. Law § 17-101

New York’s own debt collection law

New York General Business Law § 601 lists collection practices that a principal creditor or its agent may not use, such as impersonating law enforcement or a government agency.

“§ 601. Prohibited practices. No principal creditor, as defined by this article, or his agent shall: 1. Simulate in any manner a law enforcement officer, or a representative of any governmental agency of the state of New York or any of its political subdivisions; or”
N.Y. Gen. Bus. Law § 601 (Article 29-H)

If a creditor wins a judgment in New York

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different New York rules take over.

How long a judgment lasts

In New York, a money judgment is conclusively presumed paid after 20 years from when the creditor could first enforce it, unless the debtor acknowledged the debt in a signed writing or made a payment within that time (which restarts the 20 years).

“A money judgment is presumed to be paid and satisfied after the expiration of twenty years from the time when the party recovering it was first entitled to enforce it. This presumption is conclusive, except as against a person who within the twenty years acknowledges an indebtedness, or makes a payment, of all or part of the amount recovered by the judgment”
N.Y. C.P.L.R. § 211(b)

Wage garnishment

New York allows an income execution of no more than 10% of the debtor's income, and nothing may be withheld from a week's earnings unless disposable earnings exceed 30 times the greater of the federal or state minimum hourly wage (further limits apply).

“Where a judgment debtor is receiving or will receive money from any source, an income execution for installments therefrom of not more than ten percent thereof may be issued and delivered to the sheriff of the county in which the judgment debtor resides”
N.Y. C.P.L.R. § 5231(b)

Money in a bank account

In New York, if exempt payments (such as Social Security or other statutorily exempt benefits) were directly deposited into the account in the 45 days before a restraining notice or execution was served, $2,500 in the account is exempt; the statute provides for periodic adjustment of this amount, so the current figure may differ.

“If direct deposit or electronic payments reasonably identifiable as statutorily exempt payments were made to the judgment debtor's account in any banking institution during the forty-five day period preceding the date a restraining notice was served on the banking institution or an execution was served upon the banking institution by a marshal or sheriff, then two thousand five hundred dollars in the judgment debtor's account is exempt”
N.Y. C.P.L.R. § 5205(l)(1)

Small claims court

In New York City Civil Court, a small claim is a claim for money only of no more than $10,000, excluding interest and costs; small claims courts outside New York City are governed by other court acts not recorded here.

“The term "small claim" or "small claims" as used in this act shall mean and include any cause of action for money only not in excess of ten thousand dollars exclusive of interest and costs”
N.Y. City Civil Court Act § 1801

Time-barred debt in New York

In New York, once the limitations period on a consumer credit debt expires, a later payment, written or oral affirmation, or other activity on the debt does not revive or extend it.

“Notwithstanding any other provision of law, when the applicable limitations period expires, any subsequent payment toward, written or oral affirmation of or other activity on the debt does not revive or extend the limitations period.”
N.Y. C.P.L.R. 214-i

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how New York treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in New York?

3 years for credit-card debt and 6 years on a written contract, under N.Y. C.P.L.R. § 213; § 214-i. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in New York?

Once the 3-year period for consumer-credit debt has run, a later payment, a written or oral promise, or other activity on the debt does not revive or extend it (N.Y. C.P.L.R. § 214-i).

Does New York have its own debt collection law?

New York General Business Law § 601 lists collection practices that a principal creditor or its agent may not use, such as impersonating law enforcement or a government agency. (N.Y. Gen. Bus. Law § 601 (Article 29-H)).

How long does a court judgment last in New York?

In New York, a money judgment is conclusively presumed paid after 20 years from when the creditor could first enforce it, unless the debtor acknowledged the debt in a signed writing or made a payment within that time (which restarts the 20 years). (N.Y. C.P.L.R. § 211(b)).

How much of my pay can be garnished in New York?

New York allows an income execution of no more than 10% of the debtor's income, and nothing may be withheld from a week's earnings unless disposable earnings exceed 30 times the greater of the federal or state minimum hourly wage (further limits apply). (N.Y. C.P.L.R. § 5231(b)).

What if I am sued on an old debt in New York?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.