How Court Changes in New York May Affect Debt Collection During Coronavirus Outbreak

A photo of a man looking concerned to represent debt collection in court.Earlier in March, due to the coronavirus outbreak, New York’s civil, district and supreme courts were closed to the general public. As of right now, the courts are still closed. The courts are no longer accepting any papers for filing, including filing any new cases requiring litigation, motion papers, discovery demands and judgments, default or otherwise.

All motions and conferences in civil cases are being adjourned without future dates. Motions already submitted to the court will be decided, if at all during this time, without further appearances or oral argument.

Since parties cannot file any new cases or continue cases already in process, the court has extended the statute of limitations, the time in which a party can bring a claim.

Proceeding With Debt Collection

There will be some options available to those with debt collection needs or who need to free up funds that might be “frozen.”

The court will hear essential applications and motions only on an emergency basis. It will be up to the court to determine if an application is an emergency and will be considered.

These are the types of “essential applications” we believe the court will entertain that Frank, Frank, Goldstein & Nager handles regularly:

Applications to Free up Money and Assets

You may be able to vacate a judgment or lien if the judgment was not warranted, you were not served with the summons and complaint and have a “meritorious” defense to the case), and:

  • Your bank account has been restrained or frozen or
  • You wish to set aside a property execution (levy or sale) or
  • Wish to vacate a real estate lien to clear title to be able to proceed with closing or
  • Wish to vacate a lien on a bank, a customer that owes you money, a lien placed against insurance proceeds, brokerage account or almost any asset.

Essential Applications to Obtain Monies Owed to You

You may also be able to get an order of attachment if you believe the company is going of business and have identified an asset that could be used to pay your debt.

Currently, we are able to enforce judgments. We are also able to restrain bank accounts, levy monies owed to the judgment debtor, and much more.  At this time, Governor Cuomo has halted the collection of some state debts including state student loans. The private sector has not been ordered to stop debt collection efforts.

Mediations and arbitrations are proceeding.

For more debt collection information or to discuss your business’ unique needs, contact Frank, Frank, Goldstein & Nager.

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1 thought on “How Court Changes in New York May Affect Debt Collection During Coronavirus Outbreak”

  1. Hi, i am an attorney and have a judgment against a doctor. What do i serve on the Bank to have them issue a check from the debtor’s account and have that paid to my office, not the Sheriff? Thanks.

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