The New York Civil Court has proposed significant changes affecting debt collection litigation in consumer cases. In an attempt to put consumers on equal footing, offering them additional protection, Chief Judge Jonathan Lippman has proposed reforms affecting the over 100,000 consumer claims filed annually, half of which result in default judgments.
Debt collection litigation in New York is started by the filing of a document detailing the relief requested. In other words, the document details why you are filing the lawsuit and what you are looking to gain.
Creditors with claims of $25,000.00 or less file their cases to recover bad debt and pursue debt collection litigation in the New York City Civil Court. The requirement is that one of the parties must reside in the City of New York or the cause of action (the underlying transaction)
If you pursue New York debt collection litigation will you have to appear in Court? Creditors are sometimes hesitant to file suit against non-paying customers because they are concerned they will need to spend days testifying in Court. Live testimony is not always necessary to win your case.