New York Commercial Debt Collection: A Creditor's Guide

6 yearsCPLR §213(2) written contract

9% p.a.CPLR §5004 statutory interest

USD 500KCommercial Division threshold

The New York court system for commercial debt collection

6 yearsCPLR §213(2)Written contract limitation

9% p.a.CPLR §5004Pre & post-judgment interest

20 yearsCPLR §211(b)Judgment enforcement

CPLR §5222Restraining noticeNo court order needed post-judgment

DCWPNYC licenseAdministrative Code §20-489

Collection process

1

Demand + DCWP license check

Demand letter citing 9% CPLR §5004 interest from due date. NYC: verify DCWP license (Administrative Code §20-489) before first contact. Foreign creditor with non-US domicile: SDNY diversity jurisdiction if claim >USD 75K.

2

NY Supreme Court / Commercial Division

Commercial Division (NYC threshold USD 500K). Civil Court for claims ≤USD 50K. Accelerated motion practice. Default judgment available. Pre-judgment attachment (CPLR §6201) where debtor is non-domiciliary or moving assets.

3

Post-judgment enforcement via CPLR Article 52

CPLR §5222 restraining notice: counsel-issued, freezes third-party-held assets 1yr — no separate court order. §5224 information subpoena. §5225 turnover proceeding. Real property lien via judgment docketing §5203.

New York gives creditors some of the most aggressive post-judgment tools in the United States — but only if you understand CPLR §5222. A Manhattan bank account can be frozen post-judgment by counsel alone, without returning to court. This is distinctive in any jurisdiction.

NY Enforcement Tools — CPLR Article 52

ToolSpeedNotes

Restraining notice (§5222)

Immediate

Counsel-issued post-judgment — freezes third-party assets for 1yr — no court order required

1 yr freeze

Turnover proceeding (§5225)

Weeks

Compels delivery of specific assets held by third parties — reaches intangibles

Flexible

Income execution (§5231)

Weeks

Wage garnishment — state and federal floors apply

Ongoing

Information subpoena (§5224)

Days

Post-judgment asset discovery — banks, employers, counterparties

Quick

Judgment lien on real property (§5203)

Months

Abstract of judgment filed with county clerk — 10yr lien on NY real estate

10 yrs

Pre-judgment attachment (§6201)

Weeks

Requires undertaking — available for non-domiciliaries and asset-flight risk

Bond required

What are the commercial debt collection laws in New York?

NY commercial debt: CPLR §213(2) — 6yr limitation from breach. 9% statutory interest from due date (§5004). DCWP license required for NYC debtors (Admin.Code §20-489). Post-judgment: restraining notice (§5222) — counsel-issued, freezes third-party-held assets immediately. Foreign judgments recognised under CPLR Article 53.