NY Judgement Recovery Laws
As a condition of obtaining a valid judgment in NY, creditors must
provide debtors with notice of filing suit, and thereafter, debtors must
be allowed an opportunity to be heard before the court may issue a
judgment. After notice, argument, and decision, a court may sign an
order establishing it's judgment of liability. For creditors, obtaining
a judgment is merely the first step when attempting to collect unpaid
debts. A subsequent bankruptcy filing nevertheless discharges most
general unsecured debts in Chapter 7. Upon filing bankruptcy, the
automatic stay prevents collection even after a judgment is entered.
NY Judgement Recovery Laws Regarding Collection
A court judgement establishes a public record of liability in favor
of a judgment creditor. However, a judgment of liability does little to
ensure collection. The collection process, based upon NY judgement
recovery laws, may not include execution upon any exempt assets owned by
a debtor (except when secured by a valid lien) as determined by NY State
exemption statues. All valid NY judgments bear interest from the date
issued. NY Civil. Practice Law & Remedy Code, Section 5003. The
interest rate shall be at 9% per year, except where otherwise indicated
by provided by NY Civil. Practice Law & Remedy Code, Section 5004.
However, Chapter 13 bankruptcy rules prevent accrual of interest at the
NY State rate after filing, yet permit interest in bankruptcy according
to federal rules.
The US Bankruptcy Code generously incorporates New York
State statutory laws into the administration of Chapter 7 liquidation, Chapter 13
plans,
and Chapter 11 reorganization cases. The application of State Law in
Federal Court is essential for resolving legal issues pertaining to the
ownership of property, debtor and creditor rights, employment law and
employee rights, enforcement of judgments, determinations of liability,
family obligations, and many more individual rights when dealing with
large corporations. Each year, as the State Legislature in Albany enacts
new statutes, or amends existing statutes, the ripple effect impacts all
New York citizens' rights in Federal Bankruptcy Court.
Changes in New York State statutory law affect the administration of
bankruptcy cases and determination of assets subject to forfeiture and
dischargeability of debts. Notice the following recent changes in
bankruptcy procedures:
- Settled human rights cases in New York are considered assets of the estate.
- Palimony laws in NY are distinguished from alimony and child support.
- New York State toy gun law creates vicarious liability for parents.
- Grand larceny third degree NY law definitions are expanded by recent court decisions.
- New York State retainage law violations may create criminal liability.
- New York State human rights settlements, when received, are treated as cash.
- New York compensation fees for lawyers, if contingent, may be deducted from bankruptcy court values.
- Separation laws in New York State are enforceable in Bankruptcy court according to contractual variations agreed to by the parties..
- New York State human rights cases, while pending, may be protected as an exempt
asset in Bankruptcy cases under both Chapter 7 and Chapter 13.
Back to New York State Statutory Law information index.
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