In the past, out of state creditors had been able to “extend” their time to pursue outstanding balances by filing their debt collection claims in New York State. The non-New York State resident would file their claim in New York which had a longer statute of limitations, time to start the action, instead of their home state.
Following the lead of other states, the NYS Court of Appeals has put an end to this.
Other than one exception, the Court’s decision dictated that a non-resident suing on a cause of action which accrued outside the State of New York must file timely in accordance with the statute of limitation periods of both their home state and New York State.
What does this mean and how does this impact your business if you are availing yourself of the New York Courts? Since the non-New York resident must timely file in New York and their home state, creditors must pay close attention to
1) The applicable time limitations in the States where they are operating and/or doing business,
2) The States in which the customers reside, and
3) The State in which disputes must be filed if specified in the underlying agreement.
A case can not be filed once the statute(s) of limitations expire.
Failure to do so may result in not getting paid.
Do you have questions about recovering monies in New York State? Contact FFGN. Consultations are free of charge and without obligations.