Governor Cuomo’s November Executive Order Allows Debt Collection Litigation to Proceed

Photo of New York City to represent executive order and debt collectionCreditors and debtors alike have been holding their breath waiting to see what New York Governor Andrew Cuomo would do as it relates to civil actions in the state, more specifically debt collection litigation. On November 3, 2020, Governor Cuomo issued an executive order which basically gives litigants a green light to proceed with debt collection litigation.

Subsequent to declaring a state of emergency in New York in early March, Cuomo issued several other orders which affected debt collection in the state.

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How New York Budget Cuts Will Affect Debt Collection

Gavel to represent New York budget cuts affecting debt collection.Without aid from the federal government, New York state will see budget cuts of 10 billion in 2021 followed by budget cuts of 30 billion in 2022. Some of the anticipated cuts will affect our judicial system. The budget cuts will affect New York debt collection cases. Here’s how.

Governor Cuomo’s 2021 budget calls for a decrease in funding of the New York judiciary system. According to Chief Administrative Judge Lawrence Marks, “New York’s Unified Court System will see a $300 million cut to its annual budget of $3 billion, forcing the judiciary to “implement a range of painful measures.”

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Getting a Judgment in Your New York Debt Collection Case During the Pandemic

photo of a gavel to represent debt collection during the pandemic.Maybe you already started a New York debt collection case and are waiting for a judgment or are looking to file a new case.  With news of court closures, partial staffing, extensions, and a likelihood of an increased infection rate in New York, will you be able to get a judgment in your debt collection case during the pandemic?

Your concern is valid. Before New York was placed on pause due to the COVID-19 pandemic, New York courts already had delays in processing judgments. Budget cuts, the voluminous filings after the 2008 recession, and catching up on older court filings created a backlog for the clerks to reach and enter judgments.

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New York Vacating 29,617 Northern Leasing Default Judgments

Image of a credit card processor to represent Northern Leasing vacating judgmentsA recent decision by the NY attorney general resulted in New York vacating 29,617 default judgments obtained by Northern Leasing. New York’s four-year crusade against Northern Leasing, a deceptive company, and its collection attorneys ends with a victory for business owners affected by their practices. The victory may be bittersweet however, as many of the affected businesses went under due to improperly entered judgments and the results that followed when the judgment creditor executed against the businesses’ assets.

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