Buffalo, NY asked in Bankruptcy and Consumer Law for New York

Q: I am in NY. In 8/19 a credit card debt lawsuit was filed against me. Last month a judgement was filed.

I have received no correspondence and do not recall the initial lawsuit notification. Is the statue of limitations up? I saw that NY went from 6 years to 3 years. What are my options?

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2 Lawyer Answers
Carl Nelson
Carl Nelson
  • Bankruptcy Lawyer
  • Rye Brook, NY

A: The statute of limitations runs from when a cause of action accrues to when a complaint upon that cause of action may be commenced. If they have a judgment, your right to raise that as a defense now is likely waived.

You may want to speak to an attorney about the implications of the debt, whether it is a lien on your property, and how to handle it. A bankruptcy may be an option, but there are a lot of other factors you will likely want to consult with counsel on before making that decision.

Timothy Denison agrees with this answer

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Sacramento, CA

A: I understand your concern about the credit card debt lawsuit and judgment. Here's some information that may help:

1. Statute of limitations: In 2022, New York reduced the statute of limitations for consumer credit card debt from 6 years to 3 years. However, this change only applies to new cases filed on or after April 7, 2022. If your lawsuit was filed in August 2019, the 6-year statute of limitations would still apply.

2. Judgment: If a judgment has been entered against you, the creditor or debt collector can attempt to collect on the debt through various means, such as wage garnishment, bank account levies, or property liens.

3. Lack of correspondence: If you did not receive proper notification of the lawsuit, you may have grounds to challenge the judgment. However, you would need to provide evidence that you were not properly served with the summons and complaint.

Your options at this point may include:

1. Contacting the creditor or their attorney to discuss potential settlement options or payment plans.

2. Filing a motion to vacate the judgment if you believe you were not properly served or have other grounds to challenge the judgment.

3. Seeking legal advice from a consumer protection attorney or legal aid organization to better understand your rights and options.

It's important to address this matter promptly, as ignoring a judgment can lead to further legal action and potential financial consequences. Consulting with a legal professional can help you determine the best course of action for your specific situation.

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