New York Debt Collection Laws
How long a creditor can sue you in New York, how much of your paycheck is protected, and your rights against debt collectors.
New York debt rules at a glance
The key numbers. Details and the exact law are below.
How long can a creditor sue you in New York?
3 years for consumer credit debts
A lawsuit arising out of a consumer credit transaction, where the borrower or debtor is the defendant, must be brought within three years.
An old debt stays old
Once the limitations period expires, a later payment, a written or oral affirmation, or any other activity on the debt does not revive or extend it.
How much of your paycheck can be garnished?
10% of income, with a cap and a floor
An income execution can take up to 10% of your income. It can't take more than 25% of your weekly disposable earnings or the amount above 30 times the minimum wage (the higher of the federal or New York rate), whichever is less. If your weekly disposable earnings are 30 times the minimum wage or less, nothing can be withheld.
What debt collectors can't do in New York
New York's debt collection law
New York General Business Law section 601 lists collection practices that are banned in New York, on top of the federal rules.
Collectors can't sue on expired debt
Under the federal debt collection rule (Regulation F), a debt collector must not bring or threaten to bring a lawsuit to collect a time-barred debt, meaning a debt whose statute of limitations has run out.
When a debt collector contacts you
A practical order of operations.
Don't pay or promise anything on the first call
Ask for the collector's name, company, mailing address and the amount they claim. In some states a payment or promise can affect an old debt, so check the rules above first.
Ask for validation in writing
Federal law gives you the right to a validation notice listing the debt, the creditor and your right to dispute. Dispute in writing within the validation period if the debt isn't yours or the amount is wrong.
Check the date of your last payment
Compare it with your state's time limit above. If the time limit has passed, a collector may not sue or threaten to sue you.
Never ignore a lawsuit
If you are served with court papers, respond by the deadline, even on an old debt. Being out of time is usually a defense you have to raise in court. Legal aid can help.
Report abuse
Threats, harassment and calls at odd hours break federal and state law. File complaints with your state regulator and the CFPB (links below).
Free help in New York
Government complaint lines and nonprofit counseling. Be wary of anyone who charges upfront fees to settle debt.
New York Attorney General
Credit, debt and lending help: ag.ny.gov
CFPB complaint
File a complaint about a debt collector with the Consumer Financial Protection Bureau: consumerfinance.gov/complaint
Nonprofit credit counseling
Find an NFCC member agency: NFCC agency finder. If you are considering bankruptcy, use an agency on the U.S. Trustee approved list.
Links checked September 24, 2026.
Sources
Every rule on this page comes from these laws and official resources, checked on September 24, 2026. Read the current text before you act.
Primary sources
- N.Y. CPLR 214-i - consumer credit, three years (Justia mirror of NY law)
- N.Y. CPLR 5231 - income execution (Justia mirror of NY law)
- N.Y. Gen. Bus. Law 601 (NY Senate)
- NY Attorney General - credit, debt and lending
- 12 CFR 1006.26 - Collection of time-barred debts (Regulation F)
- 15 U.S.C. 1673 - Federal limit on wage garnishment
- CFPB - Debt collection help
- FTC - Debt collection FAQs
Debt collection laws in other states →
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