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Debt & collections · What to do now

Sued for a debt in New York? What to do now, step by step

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

Don't ignore the papers. If you don't answer in time, the creditor can get a default judgment and then freeze your bank account or take part of your wages. In most New York courts you have 20 days to answer if the summons was handed to you personally, and 30 days after service is complete if it was served another way. Read the complaint, check whether the debt is yours, the amount is right, and the three-year time limit hasn't passed, then file an answer that lists your defenses and go to every court date.

Read on for the details, the exceptions and the sources.

In plain words

Summons and complaint
The court papers that start a lawsuit. The summons tells you where and by when to answer; the complaint says what the plaintiff claims.
Plaintiff / defendant
The plaintiff is the one suing (a bank or debt buyer); the defendant is the one being sued (you).
Answer
Your written response to the complaint, saying what you deny and which defenses you have.
Default judgment
A judgment entered against you because you didn't answer or didn't show up — without the court hearing your side.
Stipulation
A written settlement agreement filed in the case, often a payment plan.

Step by step

  1. Write down how and when you got the papers

    Were they handed to you? Left with someone at your home or work and also mailed? Taped to your door and mailed? The method decides your deadline. Keep the papers and any envelope.

  2. Work out your answer deadline

    If the summons was personally delivered to you, you generally have 20 days. If it was served another way — left with another person, or attached to your door, plus mailing — you have 30 days after service is complete, which is 10 days after the server files proof of service with the court (CPLR § 320(a), § 3012(c), § 308(2), (4)). In New York City Civil Court, the rule is 20 days after personal delivery in the city, otherwise 30 days after proof of service is filed (NYC Civil Court Act § 402). When in doubt, answer as early as you can.

  3. Read the complaint closely

    In a consumer credit case the complaint must come with the summons and must attach the contract or charge-off statement, name the original creditor, give the date and amount of your last payment, itemize the amount, and — for a debt buyer — list each owner of the debt (CPLR § 3012(a), § 3016(j)). Missing pieces may matter to your defense.

  4. File your answer

    Answer in writing with the court clerk by the deadline, and keep a stamped copy. Deny what isn't true and list every defense that may apply: it's not your debt, the amount is wrong, you already paid, identity theft, the debt is past the three-year limit, or you were not properly served. Defenses such as the statute of limitations and improper service can be lost if you leave them out (CPLR § 3018(b), § 3211(e)).

  5. Go to every court date

    Missing a date can lead to a default. Bring your papers and records. If you need more time, ask the court; it can extend the time to answer for a reasonable excuse (CPLR § 3012(d)).

  6. If you settle, read before you sign

    A settlement can be a good outcome, but a stipulation often lets the creditor get a judgment without further notice if you miss a payment (CPLR § 3215(i)). Agree only to payments you can keep up with, and get the full terms in writing.

What to check

  • The court, the index number and the plaintiff's name — is it the original lender or a debt buyer you've never heard of?
  • How you were served, and whether the server's sworn proof of service describes you and your home correctly.
  • The date of your last payment. For a credit card or other consumer credit debt, a suit generally must start within three years (CPLR § 214-i); for medical debt, three years from treatment (CPLR § 213-d).
  • Whether the documents required by CPLR § 3016(j) are attached, and whether the amounts add up.
  • Whether you received a second copy of the summons by mail in an envelope marked 'personal and confidential'. Before a default judgment on a contract debt, the plaintiff must mail one at least 20 days before judgment (CPLR § 3215(g)(3)).
  • Whether the debt is yours at all. Identity theft and mixed-up files happen.

What you may be owed

  • If the debt is past the time limit and you raise it in your answer, the court may dismiss the case.
  • If a debt collector sued you on a time-barred debt, that may violate Regulation F (12 C.F.R. § 1006.26), and you might have a claim for damages and lawyer's fees under 15 U.S.C. § 1692k — worth checking with a consumer lawyer.
  • If a judgment is entered on a consumer debt against you, interest should be 2% a year, not 9% (CPLR § 5004) — worth checking any interest figure you are shown.
  • If you can't afford court fees, you may be able to ask the court to waive them (CPLR § 1101).
  • Even after a judgment, much of your income is likely protected: for example, 90% of your earnings and benefits such as Social Security (CPLR § 5205, § 5222(e)).

Documents to gather

  • The summons, complaint and every attached page, plus the envelope
  • A note of when and how you were served
  • Account statements, proof of payments, and your last payment date
  • Letters from collectors and any dispute you sent
  • A police or FTC identity theft report, if the debt isn't yours
  • Your income and benefit records, in case the case leads to a judgment

When to get help

If your deadline is close, file your answer first and look for help second. Free civil legal services organizations and volunteer lawyer programs in many New York courthouses help people sued on consumer debts; ask the clerk or check CourtHelp. A consumer lawyer is especially worth calling if you think the debt is time-barred or you were never served, since federal law may let you recover lawyer's fees from a debt collector that broke the rules.

Frequently asked questions

I don't think I owe this. Do I still need to answer?

Yes. The court won't know you dispute the debt unless you answer. If you don't, the plaintiff can ask for a default judgment even if the claim is wrong.

How do I know if I was 'personally served'?

Personal delivery means the papers were handed to you. If they were given to someone else at your home or job, or attached to your door, and also mailed, that is a different method and you get 30 days after service is complete (CPLR § 320(a), § 3012(c)).

Can they take my paycheck right away?

No. Garnishment requires a judgment first. If a judgment is entered, an income execution can take up to 10% of your gross pay, and less if you earn little (CPLR § 5231(b)).

What if I already missed the deadline?

Act now. If no judgment has been entered yet, you can still try to file an answer and ask the court to accept it (CPLR § 3012(d)). If a default judgment was entered, see the page on vacating a default judgment.

Want your own situation checked?

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Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

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This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.