Whether you just moved to New York or you have family and friends who are considering making the move, you will want to know what to expect when it comes to loans and debt. Both creditors and debtors can benefit from a basic understanding of the laws that are in effect and how they impact the ability of collectors to obtain the payments they are seeking.
In New York, there are some laws that exist to protect both lenders and consumers, some of which are described by debt.org. The Home Equity Theft Prevention Act is one such law that makes it so that a buyer cannot mislead you about your rights and responsibilities, the timeline of a home’s foreclosure process, the contents or terms of any signed documents, how much money you will receive or what the actual value of the home is.
Another unique law in New York is the Exempt Income Protection Act. This law limits the amount of income you can garnish in collections to 90 percent of the debtor’s gross income or 75 percent of their disposable income depending on how much they make. If the debtor makes $217.50 or less per week, you may not garnish their wages.
Statute of limitations
From the time a debt is owed, you have a time limit of six years to sue for payment. Once this time period is up, your collecting options become much more limited.
This is an informative article about debt collection in New York and should not be viewed as legal advice.